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🇮🇱 Israel /Economy & Trade

US imposes 50% tariffs on Canadian goods after deal fails, USTR Greer says no new talks planned

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The U.S. has imposed 50% tariffs on approximately $20 billion of Canadian goods after trade deal negotiations failed.
  • Canada's Prime Minister Mark Carney suspended trade talks, accusing the U.S. of proposing unfair and uneconomic terms.
  • The tariffs, representing just over 5% of Canada's exports to the U.S., increase bilateral tensions and could complicate future trade agreement discussions.

The United States has imposed significant 50% tariffs on roughly $20 billion worth of Canadian goods, effective immediately after trade negotiations between the two nations collapsed. U.S. Trade Representative Jamieson Greer announced the measures, stating that Canada declined to finalize a trade deal under previously agreed-upon terms.

I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to ​return to Ottawa.

— Mark CarneyPrime Minister Mark Carney announced the suspension of trade talks in a statement.

Canadian Prime Minister Mark Carney responded by suspending trade negotiations, directing Canadian negotiators to return home. He characterized the U.S.'s last-minute proposed changes as "unfair, uneconomic, and called into question the reliability of any deal." Carney vowed that Canada would retaliate with equivalent tariffs, engaging in a "dollar for dollar" response.

They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute. However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.

— Mark CarneyPrime Minister Mark Carney explained the reasons for suspending trade negotiations.

While the tariffs affect just over 5% of Canada's exports to the U.S., impacting items like wooden ice hockey sticks, they represent a notable escalation in tensions between President Donald Trump and Prime Minister Carney. This move is expected to make broader discussions regarding the renewal of the U.S.-Mexico-Canada free trade agreement more challenging.

Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.

— Jamieson GreerU.S. Trade Representative Jamieson Greer stated during a White House briefing why the deal failed.

Sources indicated that the U.S. offer would have placed Canada in a favorable tariff position among major U.S. trading partners. However, Canada reportedly sought additional concessions, particularly concerning steel, aluminum, autos, and softwood lumber. U.S. officials described the U.S. offer as beneficial, positioning Canada as a partner in the fastest-growing economy in the G7, but Canada's refusal to finalize the deal led to the imposition of these new tariffs.

This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7.

— Jamieson GreerU.S. Trade Representative Jamieson Greer commented on Canada's decision not to finalize the trade deal.
DistantNews Editorial

Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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