Get you up to speed: U.S. set to impose 50% tariffs on Canada after failed talks; Canada to match them “dollar for dollar”
The U.S. is set to impose 50% tariffs on $20 billion worth of Canadian products after trade negotiations between U.S. Trade Representative Jamieson Greer and Canadian Prime Minister Mark Carney broke down. In response, Carney stated that Canada will match the tariffs “dollar for dollar” and has directed Canadian negotiators to return to Ottawa.
The U.S. is set to impose tariffs starting early Saturday, despite a three-day extension that was intended to facilitate further negotiations. Canadian Prime Minister Mark Carney has suspended trade negotiations and directed Canada’s negotiators to return to Ottawa in response to the stalled talks.
The U.S. is set to impose 50% tariffs on $20 billion worth of Canadian products, while Canadian Prime Minister Mark Carney announced the suspension of trade negotiations and a commitment to match the tariffs “dollar for dollar.” As the trade conflict intensifies, Carney has accused the U.S. of unfair terms, with Canada’s retaliatory measures likely to further complicate relations between the two nations.
What remains unclear — It is not specified what specific concessions Canada sought on the Trump tariffs that were deemed unacceptable by the U.S.
U.S. to impose 50% tariffs on $20 billion of Canadian goods after talks fail
The U.S. was set to impose 50% tariffs on $20 billion worth of Canadian products early Saturday after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies. Canada’s leader countered that it would match the tariffs “dollar for dollar.”
In a call with reporters late Friday, U.S. Trade Representative Jamieson Greer said that Canada had declined to finalize the trade deal under the terms that had been agreed to earlier this week.
In his own statement, Canadian Prime Minister Mark Carney said that the “progress” made in the negotiations was “not been enough to meet our objectives for Canadians.”
“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” Carney said, adding that “Canada will match those tariffs dollar for dollar to protect our workers and businesses.”
Canada sought concessions on Trump tariffs on steel, aluminum, autos and lumber that the United States was unwilling to provide, a senior Trump administration official told reporters. Carney blamed Washington for the breakdown, saying “last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.” He said he had suspended negotiations and directed Canada’s negotiating team to return to Ottawa.
President Trump’s import taxes will hit about 5% of what Canada ships to the U.S. every year, including products ranging from hockey sticks to tongue depressors.
But the political impact will likely be even bigger than the economic fallout. Canada has threatened to retaliate against any new tariffs with levies of its own, aggravating a trade fight between countries that sold each other $880 billion worth of goods and services last year.
The tariffs were initially supposed to kick in at 12:01 a.m. Wednesday. But Mr. Trump extended the deadline for three days to allow talks to continue, but the two countries still could not reach an agreement in time.
Earlier this week, Carney had said that “substantial progress has been made, although there is important work still to be done.”
The Trump administration currently imposes a 10% tariff on goods from Canada, the U.S.’s second-largest trading partner after Mexico, though most Canadian imports are exempt because they comply with the U.S.-Mexico-Canada Agreement, a trade deal signed during Mr. Trump’s first term.
Mr. Trump has had a tense relationship with Canada due to trade, NATO, a dispute over a Detroit-area bridge and his threats to make Canada the U.S.’ 51st state.