US and Canada Deepen Trade War as 50 Percent Tariffs Take Effect
Talks collapsed late Friday. The United States imposed 50 percent tariffs on about $20 billion of Canadian goods. Canada will respond with matching measures from September 8.
Ottawa1 min read
Last updated
The United States and Canada have moved deeper into a trade conflict after negotiations broke down late on Friday. New 50 percent tariffs on roughly $20 billion of Canadian goods took effect on Saturday.
The duties cover a range of products including hockey sticks, wine, furniture, dairy items, cement, clothing and agricultural goods. They represent about 5 percent of Canada's annual exports to the United States.
Canadian Prime Minister Mark Carney suspended talks and ordered negotiators back to Ottawa. He said last-minute U.S. terms were unfair and uneconomic. Canada will impose dollar-for-dollar retaliatory tariffs starting September 8 on U.S. steel, dairy, appliances, agricultural equipment, pulp, paper and electronics.
President Donald Trump later threatened additional 50 percent tariffs on Canadian cars, trucks, auto parts and steel from January 1, 2027. No further talks are scheduled.
Canada sends the majority of its goods exports to the United States. The dispute follows more than a year of tariff actions that have already affected steel, aluminum, automobiles and lumber. Provincial leaders have indicated willingness to accept economic costs rather than concede to U.S. pressure.
