US Imposes 50% Tariffs on $20 Billion of Canadian Goods
The United States has imposed 50 percent tariffs on around $20 billion worth of Canadian goods after trade negotiations between Washington and Ottawa failed to produce a final agreement following three days of talks in Washington, DC.
The new tariffs came into effect after a deadline set by US President Donald Trump expired at 12:01am Eastern Time on Saturday (04:01 GMT). Officials from both countries confirmed that no trade deal had been finalised before the deadline.
Canadian Prime Minister Mark Carney said Canada would respond by matching the new US tariffs “dollar for dollar”, signalling a further escalation in the ongoing trade dispute between the two North American neighbours.
In a statement, Carney said Canada had made significant progress in recent weeks towards securing what he described as the “best deal in the world” with the United States. However, he said the progress was not sufficient to meet Canada’s objectives.
Carney also said the Canadian government would introduce new measures in the coming days to protect workers and businesses from the impact of the escalating trade war.
Meanwhile, US Trade Representative Jamieson Greer blamed Canada for the collapse of the negotiations. Greer described the failure to reach an agreement as a “missed opportunity for Canada to partner with the United States”.
According to Greer, Canada had declined to finalise the deal under terms discussed earlier in the week. He also accused Ottawa of making new demands and backing away from previous commitments, disrupting what Washington considered a carefully negotiated balance.
The latest tariffs will affect approximately 5 percent of Canadian exports to the United States, including electronics, industrial machinery and dairy products.
The measures come on top of existing US tariffs targeting Canadian steel, lumber and automobiles, further increasing pressure on trade relations between the two countries.
The latest escalation could have wider implications for businesses and consumers on both sides of the border, as Washington and Ottawa now face the challenge of preventing the trade dispute from developing into a broader economic conflict.
