The United States and Canada ended last-minute trade talks in failure, and Washington moved ahead with 50% tariffs on about $20 billion in Canadian products. Canada immediately said it would respond with equal dollar-for-dollar retaliatory tariffs, pushing the dispute deeper into a trade war.
The new U.S. duties took effect at 12:01 a.m. Eastern time Saturday and apply to hundreds of Canadian goods, including hockey sticks, medical tongue depressors, wine, lumber and agricultural products. The targeted imports account for about 5% of Canada’s total exports to the United States.
Canadian Prime Minister Mark Carney said in a statement that Canada would protect workers and businesses by matching the U.S. tariffs with retaliatory duties of its own. He said the U.S. changes to the proposed deal at the last minute were unfair and uneconomic, and he ordered negotiators to break off talks and return to Ottawa. Carney also said the government will announce additional support for domestic companies and workers in the coming days.
U.S. Trade Representative Jamieson Greer pushed back, saying the U.S. had offered Canada some of the most favorable treatment available to major exporters, including lower tariffs on steel, aluminum, autos and lumber. He said Canada added new demands and derailed the talks. With both governments saying there are no further negotiations planned, the trade conflict appears headed for a prolonged standoff.
