US Imposes 50% Tariffs on Canadian Goods After Trade Talks Collapse

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

The duties, which took effect on Saturday, apply to a range of products including wine, furniture, hockey sticks, dairy, cement and clothing. They add to existing tariffs on steel, aluminium, automobiles and lumber.

Canadian Prime Minister Mark Carney suspended negotiations, recalled his team from Washington and announced that Canada would respond with matching tariffs on US goods. The retaliatory measures, targeting steel, dairy, appliances, agricultural equipment, pulp and paper and electronics, are set to begin on 8 September.

Carney said last-minute changes proposed by the United States were unfair, uneconomic and undermined confidence in any deal. US officials have accused Canada of insufficient movement on issues including fentanyl trafficking and other long-standing irritants.

President Donald Trump later announced additional 50 percent tariffs on Canadian cars, trucks and automotive parts to take effect from 1 January 2027. He has characterised Canada’s position as seeking the benefits of statehood without the obligations.

The escalation marks a further deterioration in relations between the two neighbours, who form one of the world’s largest trading relationships. Canada relies on the United States for nearly 70 percent of its exports. Both sides have indicated no immediate plans to resume talks.