Trade deal fails as Canada vows dollar-for-dollar response to Trump tariffs
WASHINGTON: Hefty US tariffs on some Canadian products took effect on Saturday after days of negotiations that went down to the wire failed to produce an agreement.
On Saturday, US tariffs on Canadian products took effect in response to failed trade negotiations, according to a report by AFP. Canadian Prime Minister Mark Carney pledged that Canada would match the US tariffs dollar for dollar to protect its workers and businesses. The lack of an agreement led to new 50-percent duties on $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States.
The impacted products span various industries, including hockey sticks and cement. US Trade Representative Jamieson Greer stated that Canada declined to finalize the trade deal under the earlier agreed terms. The US had offered tariff reductions in sectors like steel and aluminum, but Canada still sought more concessions. The US administration reportedly provided significant tariff reductions on steel, aluminum, autos, and lumber in exchange for concessions from Canada.
However, Carney deemed the last-minute changes unfair, uneconomic, and questionable, calling into question the reliability of any deal. Both sides expressed hope for a deal, as the US-Canada relationship had faced significant challenges in the past 18 months.
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