U.S. to impose 50% tariffs on some Canadian imports after trade talks fail
The United States will impose 50% tariffs on about $20 billion in Canadian imports after trade negotiations failed, prompting Canada to suspend talks and pledge retaliation.
Washington, United States. The United States and Canada failed to reach a trade agreement late on Friday, with the U.S. set to impose 50% tariffs on some Canadian imports. Canada said it had suspended negotiations and would retaliate dollar for dollar.
New tariffs
A senior Trump administration official said Section 338 tariffs on about $20 billion worth of Canadian goods would take effect shortly after midnight on Saturday.
The measures apply regardless of whether Canadian goods qualify for preferential treatment under the U.S.-Mexico-Canada trade agreement, which has shielded much of Canadian industry from earlier U.S. tariffs.
Canada suspends negotiations
The U.S. decision followed three days of talks in Washington between Canada’s minister for trade with the U.S., Dominic LeBlanc, and U.S. Trade Representative Jamieson Greer.
Canadian Prime Minister Mark Carney said he had directed Canada’s negotiators to return to Ottawa.
“I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” Carney said in a statement.
He said negotiators had worked in good faith to defend Canadian interests until the last minute, but that last-minute changes to proposed U.S. terms were unfair, uneconomic and raised questions about the reliability of any agreement.
Economic impact
While the new measures affect a relatively small share of Canadian exports, they add to existing U.S. tariffs on steel, lumber and autos.
The tariffs could affect Canada’s fragile economic recovery and influence broader negotiations between the two countries over a free-trade pact in the coming months.
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