The tariffs, on $20 billion worth of Canadian products, came into force early Saturday after last-minute negotiations<\/a> failed.<\/p>\n Trump\u2019s tariffs will hit about 5 per cent of what Canada ships to the U.S. every year.<\/p>\n The goods affected range from hockey sticks to tongue depressors.<\/p>\n Canadian Prime Minister Mark Carney<\/a> immediately promised to retaliate, saying: \u201cCanada will match those tariffs dollar for dollar to protect our workers and businesses.\u201d<\/p>\n Canada sought concessions on steel, aluminium, lumber and cars, but the U.S. was unwilling to provide those, a senior official in the Trump administration said.<\/p>\n \u201cTonight, Canada declined to finalize the trade deal<\/a> under the terms agreed earlier this week,\u201d U.S. Trade Representative Jamieson Greer said shortly before midnight.<\/p>\n \u201cDespite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.\u201d<\/p>\n Carney blamed Washington for the breakdown, saying that \u201clast-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.\u201d <\/p>\n He said that he had suspended negotiations and told Canada\u2019s negotiating team to return to Ottawa.<\/p>\n He added that his government would announce additional support for Canadian workers and businesses in the coming days.<\/p>\n Greer said that the U.S. offer was \u201cforward-looking\u201d and included \u201ca historic economic and national security partnership.\u201d<\/p>\n No further talks have been planned. The breakdown in negotiations marked a sharp reversal from two days earlier, when officials from the two countries sounded as if they were headed toward a compromise.<\/p>\n Carney said Canada\u2019s goal throughout the negotiations had been to secure the best possible agreement, \u201cnever a deal at any price or on any deadline.\u201d<\/p>\n The political impact will likely be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services in 2025.<\/p>\n The tariffs were initially supposed to kick in at 12.01 a.m. Wednesday. Trump extended the deadline for three days to allow talks to continue, but the two countries still could not reach an agreement in time.<\/p>\n Trump\u2019s approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries. Trump has also made repeated inflammatory comments about turning Canada into America\u2019s 51st state<\/a>.<\/p>\n Carney said Canada had recognized that \u201cAmerica has changed\u201d and that the two countries would \u201cnot return to our old relationship.\u201d<\/p>\n![\"US](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/1787382551_443_2281267274...jpeg\")
US President Donald Trump speaks with Canada’s Prime Minister Mark Carney at the G7 summit earlier this year (AFP\/Getty)<\/p>\n![\"Trucks](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/2290498335...jpeg\")
Trucks passing over Fort Erie’s Peace Bridge between Canada and the U.S. (AFP\/Getty)<\/p>\n![\"Pete](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/1787382554_958_1214865495...jpeg\")
Pete Hoekstra, the U.S. ambassador to Canada, is facing growing calls for his expulsion (AFP\/Getty)<\/p>\n
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