Trade talks between the U.S. and Canada broke down on Friday, officials from both countries said, paving the way for the U.S. to impose 50% tariffs on about $20 billion worth of Canadian goods and risking an all-out trade war

The United States has set to impose 50% tariffs on $20 billion worth of Canadian products following unsuccessful talks aimed at resolving tensions between the two countries. Canada's Prime Minister Mark Carney announced that retaliatory tariffs will take effect starting September 8, targeting items such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

U.S. Trade Representative Jamieson Greer stated that Canada had declined to finalize the trade deal under agreed terms, indicating that further talks are not planned. Carney criticized the U.S. for making "too much" demand and offering "too little," emphasizing that Canada would always support each other and that the new tariffs are "a miscalculation" that will not succeed.

The U.S. tariffs are projected to impact around 5% of Canada's annual exports to the United States, which includes products ranging from hockey sticks to tongue depressors. The political ramifications of the trade dispute are also significant, as Canada's response may strain relations with a country that sold $880 billion worth of goods and services to the U.S. last year.