The United States imposed 50% tariffs on roughly $20 billion of Canadian exports after last‑minute trade talks collapsed, prompting Ottawa to announce matching duties dollar for dollar. The move escalates a trade dispute that threatens the broader North American trade framework.
The duties were slated to begin at midnight Saturday after Canada failed to sign a deal minutes before the deadline. U.S. Trade Representative Jamieson Greer said Canada declined to finalize the agreement, while Prime Minister Mark Carney condemned last‑minute U.S. changes as unfair and uneconomic. Negotiations spanned Thursday and Friday, with the United States offering reductions on steel, aluminum, autos and lumber in exchange for Canadian concessions.
The tariffs affect about 5% of Canada’s annual shipments, roughly 70% of its export market, raising costs for items ranging from hockey sticks to tongue depressors. The measure has sparked a public backlash in Canada, including a petition to expel the U.S. ambassador, and adds pressure on both governments ahead of the U.S. midterm elections.
Washington maintains that Canada walked away despite an earlier agreement, while Ottawa argues the United States altered the terms at the last minute and cites U.S. claims of “discriminatory treatment” of American alcohol, wine, automobiles and dairy—a point that remains contested.