U.S. and Canada fail to reach trade pact to avert Trump tariffs
The lack of a final agreement means that new 50% duties, set to impact some $20 billion of Canadian exports to the United States, took effect Saturday.
Canada has suspended trade negotiations with the United States, Prime Minister Mark Carney announced on September 28, 2021. The decision came after US President Donald Trump proposed terms that Canada deemed "unfair" and "uneconomic," despite recent progress in the talks. Carney stated that the negotiations had not been sufficient to secure tariff-free access for most Canadian businesses, reduce US tariffs on key industries, and protect small and medium-sized enterprises.
The Prime Minister emphasized that Canada's new government has been focused on building its strength domestically, diversifying partnerships abroad, and achieving a fair deal with the US. He also criticized the US for altering all its trade ties, including imposing tariffs on close allies and charging for access to its vast market.
Canada will retaliate with matching tariffs "dollar for dollar" in response to the US's proposed 50% tariff on about C$28 billion of Canadian goods. Carney directed Canada's trade negotiators to return to Ottawa, citing questions about the reliability of any potential deal. In a statement, US Trade Representative Jamie Shapiro criticized Canada for declining to finalize the trade deal under the agreed terms and for making last-minute changes that upended the carefully balanced agreement.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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