Canada has suspended trade negotiations with the United States and promised matching retaliation after Washington imposed 50% tariffs on about $20bn of Canadian goods following the collapse of talks between the two countries.<\/p>\n
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Prime Minister Mark Carney announced the decision shortly before the US tariff deadline expired on Friday night.<\/p>\n
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The new duties took effect at 12.01am Eastern Time on Saturday and cover goods that do not receive preferential treatment under the US-Mexico-Canada Agreement. The affected trade represents about 5% of Canadian exports to the United States.<\/p>\n
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Carney said Canada would respond \u201cdollar for dollar\u201d and ordered Canadian negotiators to return to Ottawa.<\/p>\n
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\u201cLast-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal,\u201d Carney said in a statement<\/a>.<\/p>\n
<\/p>\n He said negotiators had made progress but had failed to secure terms that met Canada\u2019s objectives. Ottawa plans further measures to support workers and businesses affected by the tariffs.<\/p>\n
<\/p>\n US Trade Representative Jamieson Greer blamed Canada for the breakdown.<\/p>\n
<\/p>\n \u201cTonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,\u201d Greer said in a statement<\/a>.<\/p>\n
<\/p>\n He accused Canada of introducing new demands and reversing earlier commitments. Greer described the failure to reach an agreement as a \u201cmissed opportunity\u201d.<\/p>\n
<\/p>\n A senior Trump administration official said that Canada had sought further concessions on steel, aluminium, vehicles and softwood lumber. The official said no further negotiations were scheduled.<\/p>\n
<\/p>\n The two governments had spent three days in talks in Washington after US President Donald Trump extended an earlier tariff deadline.<\/p>\n
<\/p>\n According to Reuters<\/a>, negotiators had discussed reductions in existing US duties on Canadian steel, aluminium and vehicles. The BBC<\/a> reported that talks included proposals to cut steel and aluminium tariffs from 50% to 25% and vehicle tariffs from 25% to 15%.<\/p>\n
<\/p>\n Canada had also faced US demands concerning dairy access, retaliatory vehicle tariffs and restrictions imposed by Canadian provinces on sales of American alcohol.<\/p>\n
<\/p>\n The latest tariffs cover a range of Canadian products, including dairy products, clothing, cement, industrial machinery and hockey equipment among those affected.<\/p>\n
<\/p>\n Existing US tariffs already apply to Canadian steel, aluminium, vehicles and lumber.<\/p>\n
<\/p>\n The United States and Canada exchanged about $880bn in goods and services last year.<\/p>\n
<\/p>\n Ontario Premier Doug Ford backed Carney\u2019s decision and called for a matching response to the US measures.<\/p>\n
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