United States Imposes 50% Tariffs on $20bn Canadian Goods After Trade Talks Fail

Tariffs After Talks Fail

The United States imposed 50 percent tariffs on about $20bn worth of Canadian goods after trade negotiators failed to finalise a trade deal, with the deadline expiring at 12:01am Eastern Time (04:01 GMT) on Saturday.

Canada’s Prime Minister Mark Carney said Canada would match the new tariffs "dollar for dollar" and that Canada would retaliate after the White House said it would impose 50 percent tariffs on certain imports from Canada.

Carney said Canada suspended trade negotiations and recalled its negotiators to Ottawa after last-minute changes proposed by the U.S. side were deemed "unfair, uneconomic, and called into question the reliability of any deal."

U.S. Trade Representative Jamieson Greer pinned the blame on Canada, saying it was "a missed opportunity for Canada to partner with the United States" after Canada declined to finalise the trade deal under terms agreed earlier this week.

The tariffs were described as hitting about 5 percent of Canadian exports to the US, including electronics, industrial machinery and dairy products, adding to pre-existing US tariffs on steel, lumber and autos.

Reporting for this sectionAl Jazeera@globaltimesnews

Pause, Then Unclear Deal

After the threatened 50-percent duty was due to take effect at midnight, Trump announced a three-day pause on 50 percent tariffs, and Canadian Prime Minister Mark Carney confirmed the US had agreed to suspend the tariffs until August 22.

In a Truth Social post, Trump said he agreed to a three-day pause in the tariffs after the sides reached a deal "subject to finalization of documents," while Carney said "substantial progress" had been made but "important work still to be done."

ABC News reported that Trump said Canada had dodged the threat of 50% tariffs "at least for now" and that the agreement was subject to the "finalization of documents."

Trump told reporters at the White House Wednesday that talks yielded a “very fair deal for both” sides, and he said “Our farmers are going to be thrilled, our manufacturers are going to be thrilled.”

The ABC News account also said the tariffs were postponed until 12:01 a.m. Saturday, while it noted that Trump had invoked a never-before-used legal authority dating back to the Great Depression to announce 50% tariffs on $20 billion, or about 5%, of Canadian exports.

Reporting for this sectionAl JazeeraABC News

What’s at Stake Next

Even with the pause, the dispute left key terms unresolved, and ABC News said the agreement’s details remained vague as Trump claimed Canada agreed to end tariffs on U.S. agricultural products while Canada’s supply management system remained a sticking point. ABC News quoted Trump saying “The tariffs will be non-existent for our farmers,” and it also reported that LeBlanc said Canada’s “agriculture sector will be well protected and we have maintained our tough line.” Al Jazeera reported that the tariffs would have covered about $20bn worth of imports and that they would have applied to goods regardless of whether they qualify for preferential treatment under the US-Mexico-Canada trade agreement.

The Al Jazeera account also said the auto sector was a sticking point and described discussions that included US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick about cutting the US’s Section 232 tariffs on Canadian vehicles to 15 percent from 25 percent. With the next steps hinging on what is finalized, Al Jazeera quoted Carney saying progress had not been enough to meet objectives for Canadians, while Greer said Canada declined to finalise the trade deal under terms agreed earlier this week.

Reporting for this sectionABC NewsAl Jazeera