United States Imposes 50% Tariffs on Canadian Imports After Trade Deal Collapse

Tariffs Start Saturday

The United States imposed 50% tariffs on Canadian imports worth $20 billion starting this Saturday after U.S. and Canada failed to reach a trade deal, with the rates taking effect at 12:01 a.m. ET on Saturday.

Canadian Prime Minister Mark Carney said Canada would match the U.S. tariffs "dollar for dollar" to protect workers and businesses, and he announced reciprocal measures after suspending the trade talks.

U.S. Trade Representative Jamieson Greer said the U.S. offer had been upended by "new demands and walk backs of other commitments by Canada," and he said the U.S. would continue countermeasures in response to Canada’s retaliation.

The dispute affects products ranging from hockey sticks to wine and cement, and the ABC News report said the tariffs were expected to hit only a fraction of U.S. imports from Canada due to exemptions on key goods.

Reporting for this sectionABC

Carney, Greer Trade Blame

Carney defended Canada’s position by saying "Last-minute changes to the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal," as both sides accused the other of derailing negotiations. Greer’s statement said "Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week," and he cited "new demands and walk backs of other commitments" as the reason the U.S. and Canada could not close an agreement.

In Ottawa, Carney said Canada would retaliate beginning September 8, and he said the dollar-for-dollar measures would come into force the Tuesday after Labor Day. The reporting also said Trump’s tariffs were imposed after negotiations that were considered a done deal collapsed at the last minute, and it described the breakdown as a sharp reversal from two days earlier when officials sounded as if they were headed toward compromise.

Reporting for this sectionABC@bsindia

Retaliation and Broader Fallout

Canada’s retaliatory tariffs are set to take effect on September 8, and the @bsindia report said Carney would release details of the measures that would target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. The ABC News report said Finance Minister François-Philippe Champagne and other senior cabinet officials would hold a joint press conference on Tuesday to announce new measures to protect and support Canadian workers and businesses during these challenging times.

The dispute also raised questions about the future of a North American trade agreement covering the United States, Canada and Mexico, with the @bsindia report saying the moves call into question that future and that no further talks are planned. In the U.S., Trump’s trade rhetoric escalated alongside the tariff fight, including his social media threat that "Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%" starting in January.

Reporting for this section@bsindiaABC