United States Imposes 50 Percent Tariffs on Canadian Goods After Trade Talks Collapse

The United States began collecting 50 percent tariffs on roughly $20 billion of Canadian products at midnight on August 22 after last-minute trade talks failed.

Canadian Prime Minister Mark Carney suspended the negotiations late on August 21. He said last-minute changes in the U.S. proposed terms were unfair and uneconomic. He directed Canadian negotiators to return to Ottawa.

Carney announced that Canada will match the U.S. tariffs dollar for dollar. The Canadian measures will take effect on September 8 and target U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

The U.S. tariffs cover products such as wine, furniture, dairy, cement, clothing, fishing rods and hockey equipment. They do not apply to energy, potash or critical minerals. U.S. Trade Representative Jamieson Greer said Canada declined to finalize a deal under terms agreed earlier in the week and made new demands.

The two countries traded $880 billion in goods and services last year. The new levies affect about 5 percent of Canadian exports to the United States. They sit on top of earlier U.S. duties on steel, aluminum, autos and lumber.

Carney told reporters in Ottawa that Canada will protect its workers, farmers, families and businesses. He said the government will release full details of the retaliatory list in the coming days and will introduce further support measures for affected industries.

Both sides blamed the other for the breakdown. No further talks are scheduled.