US Imposes 50 Percent Tariffs on Canadian Goods After Talks Collapse
Negotiations broke down on Friday night. The United States applied 50 percent tariffs on about $20 billion of Canadian imports at midnight. Canada matched the duties dollar for dollar.
Ottawa and Washington1 min read
Last updated
Trade talks between the United States and Canada ended without agreement on Friday night. At 12:01 a.m. Saturday, the US applied 50 percent tariffs on roughly $20 billion worth of Canadian goods. Canadian Prime Minister Mark Carney immediately ordered matching tariffs on American products.
The duties cover items such as plywood, liquor, electrical equipment and hockey gear. They represent about 5 percent of total Canadian goods exports to the United States. Oil, potash and critical minerals remain outside the new list.
Carney said last-minute changes to the US terms were unfair and uneconomic. He suspended the negotiations and sent Canadian negotiators back to Ottawa. US Trade Representative Jamieson Greer said Canada had introduced eleventh-hour demands that undid a draft deal worked out over days.
Earlier in the week both sides had discussed cutting US tariffs on Canadian steel and aluminium from 50 percent to 25 percent and on autos from 25 percent to 15 percent. In return Canada was expected to restore American alcohol to provincial store shelves and drop some of its own retaliatory measures from the previous year.
The new US tariffs rest on a provision of the Tariff Act of 1930 that had not been used before. Carney announced that Canada will introduce further support for affected workers and firms, building on nearly $25 billion already provided over the past 18 months.
The breakdown leaves the future of the broader North American trade framework under pressure. Cross-border supply chains for autos, construction materials and consumer goods now face higher costs on both sides of the border.
