US Hits Canadian Goods with 50 Percent Tariffs After Trade Talks Collapse

The United States imposed 50 percent tariffs on about $20 billion worth of Canadian goods on Saturday after last-minute trade talks with Ottawa collapsed.

The duties cover products ranging from wine and dairy to cement, clothing and hockey equipment. They represent just over 5 percent of Canada’s annual exports to the United States.

Canadian Prime Minister Mark Carney suspended negotiations late on Friday. He said last-minute changes in the American proposals were unfair and uneconomic and called into question the reliability of any deal.

Carney announced that Canada will impose matching tariffs on U.S. goods beginning September 8. The Canadian measures will target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

The two countries had been engaged in intensive talks since July. President Donald Trump had threatened the 50 percent levy and later paused it briefly while negotiators worked. Reports indicated discussion of lowering existing tariffs on Canadian steel and aluminium from 50 percent to 25 percent and on autos from 25 percent to 15 percent. In exchange, Canada was asked to restore U.S. alcohol to provincial store shelves.

No further talks are scheduled. A senior U.S. administration official said the new duties would proceed as planned.

The tariffs sit on top of earlier American measures on Canadian steel, aluminium, autos and lumber. Most Canadian exports remain protected under the existing U.S.-Mexico-Canada free trade agreement, yet the fresh duties signal a further deterioration in relations between the two longstanding allies.

Carney said the government would introduce additional support for Canadian workers and businesses in the coming days. Ottawa has already provided nearly $25 billion in assistance over the past 18 months.

The breakdown comes as both capitals prepare for broader discussions on renewing the three-nation trade deal. Analysts note that the current episode is likely to make those talks more difficult.

For Canadian exporters in the affected sectors, the immediate effect is higher costs in their largest market. American importers of those same goods face higher prices. The full economic impact will become clearer once the Canadian retaliation takes effect next month.