US Imposes Tariffs as Trade Talks Collapse
Canada Vows Retaliation After Last-Minute Negotiations Fail to Avert New Levies on $20 Billion in Goods
Carla Rooney
The United States is set to impose 50% tariffs on $20 billion worth of Canadian products.
Canadian Prime Minister Mark Carney confirmed the suspension of negotiations, vowing to retaliate 'dollar for dollar' on the new levies.
The two countries traded $880 billion worth of goods and services last year; these new measures represent a significant blow to their economic relationship.
These new measures add to existing US tariffs on steel, lumber, and vehicles, further complicating trade dynamics.
Trade negotiators had engaged in intense talks since July, yet the North American neighbors failed to reach a deal late on Friday night.
Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.
Jamieson Greer stated, 'Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.'
Greer also claimed new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.
Prime Minister Carney countered, stating, 'Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.'
The US had reportedly asked for concessions, including removing retaliatory tariffs on American autos and adjusting dairy quotas.
The US also sought the removal of a ban on US alcohol sales.
Details of a potential deal, which reportedly leaked to several media outlets, suggested the US would halve tariffs on Canadian steel and aluminum from 50 to 25 percent.
The US would also reduce tariffs on Canadian cars from 25 to 15 percent.
The goods affected by the new tariffs reportedly range from hockey sticks to tongue depressors.
The U.S.-Canada border is the longest undefended border in the world, with significant daily crossings of people and goods.
The United States has begun formal talks with Mexico over revamping the US-Mexico-Canada Agreement (USMCA), while talks with Canada have not yet commenced.