US, Canada fail to reach trade pact to avert Trump tariffs

On Saturday, heavy US tariffs on some Canadian products took effect after days of negotiations that ended without reaching a deal. Canadian Prime Minister Mark Carney threatened to match the US tariffs dollar for dollar to protect Canadian workers and businesses. The lack of a final agreement meant that new 50% duties on some US$20 billion of Canadian exports to the United States would begin on Saturday.

US trade representative Jamieson Greer had offered to reduce tariffs on steel, aluminum, autos, and lumber in exchange for concessions from Canada earlier in the week. However, Canada's top negotiator Dominic LeBlanc stated that significant work remained to be done after hours of trade talks on Friday. Canadian officials were not satisfied with the last-minute changes proposed by the US administration, which they deemed unfair and uneconomic.

The US had accused Canada of discriminatory treatment by removing US alcohol and wine from liquor stores. Despite the failure to reach an agreement, both countries still need to finalize revisions to the North American Free Trade Agreement (USMCA), which Trump had declined to renew.