US imposes 50 percent tariffs on $20 billion in Canadian goods after talks collapse; Canada vows matching response

The United States put 50 percent tariffs into effect early Saturday on roughly $20 billion of Canadian goods after last-minute trade talks failed. Canadian Prime Minister Mark Carney suspended negotiations and said Canada will match the duties dollar for dollar.

The new US levies cover about 5 percent of Canadian exports to the United States, including hockey equipment, wine, dairy, cement, clothing and other products. They sit on top of earlier tariffs on steel, aluminium, autos and lumber.

Carney told reporters the US side introduced new terms that were uneconomic and unfair and that undermined any deal. He directed Canadian negotiators to return to Ottawa. No further talks are scheduled.

Canada’s retaliatory measures will take effect September 8 and target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Details will be released in the coming days.

US Trade Representative Jamieson Greer said Canada walked away from terms agreed earlier in the week and that Washington is protecting American workers and supply chains. He described the breakdown as a missed opportunity for Canada.

The two countries had appeared close to a compromise that would have lowered tariffs on steel, aluminium and vehicles. Sources said the deal collapsed when demands shifted late on Friday.

Trade between the two nations remains the largest bilateral relationship for both. The political impact is expected to outweigh the immediate economic one, given the limited share of total trade affected. Both sides have accused the other of changing positions at the last moment.

Carney said Canada had been willing to drop remaining retaliatory tariffs on strategic sectors if the United States substantially lowered its own rates. The offer was not accepted under the final terms presented.