Trade Deal Collapses: US Imposes 50% Tariff on Canadian Imports, Canada Prepares Response

The United States is imposing a 50 percent tariff on imports from Canada after the two sides failed to reach a trade agreement. The announcement was made by US Trade Representative Jamieson Greer, while Canadian Prime Minister Mark Carney confirmed the breakdown in talks and promised retaliatory measures to support Canadian workers and businesses.

The tariff was originally set to take effect on Wednesday, but US President Donald Trump postponed its introduction to give both sides more time to negotiate. Despite the extra time, no agreement was reached: Carney called the terms put forward by Washington unfair, according to AFP.

What the Two Sides Are Saying

According to AP, US Trade Representative Jamieson Greer told reporters: "Canada tonight refused to finalize a trade deal on the terms agreed to by both sides earlier this week. Despite a US offer to give Canada the most favorable treatment of any major exporter to our market, new Canadian demands and a retreat from previously agreed commitments upset the carefully calibrated balance reached in recent days."

Canadian Prime Minister Mark Carney responded sharply: "The last-minute changes to the terms proposed by the US were unfair, economically damaging, and called into question the reliability of any agreement." He added that the Canadian government would announce additional measures in the coming days to support Canadian workers and businesses.

The Scale of the Fallout

The new US tariffs will affect roughly five percent of the goods Canada exports annually to the United States — including, among other things, hockey sticks and tongue depressors.

According to the agency's assessment, the political fallout from the dispute is likely to prove even more significant than the economic damage. Annual trade in goods and services between the two countries reached $880 billion last year.

Source: novinky.cz