Trump's 50% Tariffs on Canada Take Effect; Carney Retaliates

The collapse came days after Trump expressed confidence in reaching a deal, citing his "good relationship" with Carney.

The 50% tariff rate is unusually high for a broad set of consumer and industrial goods. Canada's response targets two industries – steel and dairy – that are central to Trump's political base. Carney said more details on the retaliation would come next week.

The breakdown leaves cross-border supply chains uncertain. Canadian exporters of plywood and electrical equipment face sudden cost increases. American dairy farmers will lose access to a key market when Canada's tariffs start.

Before the talks ended, Trump had said Washington "should be able to have a deal with Canada." Carney's rejection signals the two sides remain far apart on core issues like agriculture access and tariff levels. The tariffs add to a market analysis environment already strained by trade uncertainty.