US and Canada fail to reach a trade deal, a new development that deepens tensions between the two allies, as Washington prepares to impose 50% tariffs on some Canadian imports from midnight on Saturday.
The White House said the new tariffs will apply to Canadian goods worth about $20 billion, following the collapse of trade talks that lasted three days in Washington.
New US tariffs
The White House said the tariffs would be imposed under Section 338 and would cover Canadian goods worth nearly $20 billion, taking effect shortly after midnight on Saturday.
The move marks a fresh escalation in trade tensions between Washington and Ottawa over the terms of bilateral trade.
Canada suspends talks and vows retaliation
Canadian Prime Minister Mark Carney said his government was suspending the trade talks with the United States and would respond in kind to the new tariffs.
Carney said negotiators worked hard and in good faith to defend Canadian interests until the last moment, but that the changes made to the US proposals were, in his words, “unfair and unworkable.”
Three days of negotiations
The talks collapsed after three consecutive days of negotiations in Washington between Canada’s trade minister with the United States, Dominic LeBlanc, and US Trade Representative Jamieson Greer.
The Canadian side said last-minute US changes were a key reason the parties failed to reach a deal.
Impact on existing trade framework
Reports said Washington will apply the new tariffs separately from the exemptions already contained in the US-Mexico-Canada trade agreement.
That means the current dispute could affect one of North America’s most important trade relationships, with potential consequences for supply chains and cross-border commerce.
Conclusion:
The fact that US and Canada fail to reach a trade deal reflects a sharp rise in tensions between the allies, with new US tariffs set to come into force soon. Ottawa, meanwhile, is preparing to respond, opening the door to a new phase of trade confrontation between the two countries.
