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U.S.-Canada trade talks collapse, ushering in wave of new tariffs
U.S.-Canada trade talks collapse, triggering 50% tariffs on $20B of Canadian exports. Retaliation promised. Section 338 dusted off for first time since 1949. Markets brace for impact.
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Trade talks between the U.S. and Canada collapsed on Friday, triggering a new set of 50% Trump administration tariffs. The tariffs, impacting roughly $20 billion in Canadian exports, went into effect Saturday morning.
Negotiators had signaled progress all week. President Donald Trump postponed the original Wednesday deadline hours before it was due, saying a deal was near. Canadian Trade Minister Dominic LeBlanc told reporters Thursday that a deal was "very close."
Both sides blamed each other on Friday. Canadian Prime Minister Mark Carney said in a statement that despite working toward a deal, "that progress has not been enough to meet our objectives for Canadians." He said "last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal." Carney said Canada would retaliate "dollar for dollar."
U.S. Trade Representative Jamieson Greer told reporters Friday night that "Canada declined to finalize the trade deal under the terms agreed earlier this week."