Web Desk: The United States has imposed 50% tariffs on selected Canadian imports, escalating a trade dispute with Canada after negotiations between the two countries failed to produce an agreement.
The tariffs took effect early Saturday and cover Canadian products valued at roughly $20 billion. Although the affected goods represent a relatively small share of Canada’s exports to the US, the decision has heightened tensions between US President Donald Trump and Canadian Prime Minister Mark Carney.
Canada has suspended trade negotiations in response and warned that it will retaliate with equivalent tariffs on US products.
Canada announces retaliation
Prime Minister Mark Carney said Canada’s negotiating team had attempted to reach an agreement but rejected changes introduced by Washington at the final stage of discussions.
Carney directed Canadian negotiators to return to Ottawa and said the country would respond to the new US tariffs on a “dollar-for-dollar” basis.
The Canadian government has consistently opposed major concessions to Washington, while public sentiment in Canada remains largely against yielding to Trump’s tariff demands.
US blames Canada for failed deal
US Trade Representative Jamieson Greer said Ottawa had refused to finalise an agreement despite significant progress during negotiations.
According to the US administration, Washington had offered Canada favourable tariff terms compared with other major exporters. However, US officials said Canada continued seeking concessions on steel, aluminium, automobiles and softwood lumber.
No further negotiations have been announced while the new duties remain in effect.
US-Canada trade tensions increase
The latest tariffs add to existing American duties affecting Canadian steel, lumber and automotive products.
Economists and trade experts have warned that continued tariff pressure could hurt industries already facing difficulties, potentially leading to higher costs, reduced investment and job losses.
The latest breakdown followed three days of talks in Washington between Canadian Trade Minister Dominic LeBlanc and Greer.
The two sides had appeared close to an agreement earlier in the week, with discussions reportedly focused on reducing tariffs on several major Canadian exports and easing restrictions affecting US alcoholic beverages in Canada.
The collapse of the negotiations could also complicate efforts to review and renew the US-Mexico-Canada Agreement (USMCA), raising concerns about the future of North American trade relations.
