The United States has imposed 50 percent tariffs on about $20bn worth of Canadian goods after trade negotiators failed to finalise a trade agreement during three days of talks in Washington, DC. The tariffs took effect after a US deadline expired at 12:01am Eastern Time on Saturday, or 04:01 GMT.
Canadian Prime Minister Mark Carney said Canada would match the new tariffs “dollar for dollar”. He also said the government would introduce measures in the coming days to support workers and businesses affected by the trade conflict.
Which Canadian goods are affected
The new tariffs cover about 5 percent of Canadian exports to the United States, including electronics, industrial machinery and dairy products. They come on top of existing US tariffs on Canadian steel, lumber and automobiles.
The duties could make it harder for Canadian companies selling the affected products in the US market. Trade expert Julian Karaguesian said 50 percent tariffs would effectively price hundreds of Canadian goods out of the US market.
Why the agreement failed
US and Canadian officials said no agreement had been reached when the deadline passed. US Trade Representative Jamieson Greer blamed Canada, saying Ottawa had declined to finalise terms agreed earlier in the week and had introduced new demands or reversed other commitments.
Carney said the talks had produced important progress toward improving Canada’s trade position with the United States, but not enough to meet his government’s objectives for Canadians.
What Canada says it will do next
Carney said Canada would respond to the US tariffs dollar for dollar. He also outlined planned support for workers and businesses, although the source material does not specify the value, design or start date of those measures.
The latest duties add to a cycle of tariff threats and countermeasures that began after the Trump administration imposed tariffs on key Canadian imports early in the president’s second term. The administration had announced these new tariffs in July after Trump accused Canada of discriminatory treatment of American products.
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