The United States is set to impose 50% tariffs on billions of dollars worth of Canadian goods early Saturday after last-minute negotiations between the two countries failed to resolve a fresh dispute, further straining relations between the long-standing allies.
US Trade Representative Jamieson Greer said Canada had declined to finalise a trade agreement based on terms discussed earlier in the week. He said Washington had offered Canada favourable treatment compared with other major exporters, but accused Ottawa of introducing new demands and reversing previous commitments.
“Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,” Greer said in a statement read to reporters shortly before midnight.
He said the changes had “upended the careful balance” that had been reached during negotiations.
Canada vows to match US tariffs ‘dollar for dollar’
Canadian Prime Minister Mark Carney rejected the US position, saying changes made to Washington’s proposed terms at the last minute were unacceptable.
“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney said.
He added that Canada would respond to the new US tariffs with equivalent measures.
“At midnight tonight, the US intends to impose a 50% tariff on roughly USD 28 billion of Canadian goods. Canada will match those tariffs dollar to dollar to protect our workers and businesses,” Carney said in a statement.
How US tariffs will affect Canada
The new US import taxes are expected to affect around 5% of the goods Canada exports to the United States each year, covering a wide range of products, from hockey sticks to medical items such as tongue depressors.
While the direct economic impact could be significant, the political consequences could prove even greater as the tariff dispute threatens to further damage relations between the two countries.
The US and Canada exchanged around $880 billion worth of goods and services last year, highlighting the scale of their closely integrated economies.
The tariffs were originally scheduled to take effect at 12:01 am Wednesday. However, US President Donald Trump extended the deadline by three days to give negotiators additional time to reach an agreement. Despite the extension and last-minute talks, the two sides failed to reach a deal before the new deadline.
With inputs from AP
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