The US tariffs on Canadian goods have risen sharply after Washington and Ottawa failed to reach a new trade agreement, with the United States imposing duties of up to 50% on selected Canadian imports.
The new tariffs took effect shortly after midnight on Saturday and cover around $20 billion worth of Canadian goods. The affected products represent slightly more than 5% of Canada’s exports to the United States.
Canadian Prime Minister Mark Carney announced that Ottawa had suspended trade negotiations and ordered Canadian negotiators to return home. He said Canada would respond to the new measures on a “dollar for dollar” basis.
The US tariffs on Canadian goods have further increased tensions between US President Donald Trump and Carney. The dispute could also complicate wider negotiations over the future of the US-Mexico-Canada free trade agreement.
The two countries had appeared close to an agreement before the talks broke down. Earlier proposals reportedly included lower tariffs on steel, aluminum and automobiles, while discussions also considered the possible return of American alcohol products to Canadian liquor stores.
US Trade Representative Jamieson Greer said Canada declined to finalize the proposed agreement under terms discussed earlier in the week. A senior US administration official said Ottawa had sought additional concessions on several key industries, including steel, aluminum, automobiles and softwood lumber.
The latest duties add to existing US tariffs affecting Canadian steel, lumber and automobiles. Trade experts have warned that vulnerable sectors could face further pressure, potentially resulting in job losses and business closures as the trade dispute between the two neighbours deepens.
