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

The United States and Canada failed to finalize a trade pact on Saturday, causing new 50-percent tariffs to take effect on some $20 billion of Canadian exports to the United States. Canadian Prime Minister Mark Carney pledged to impose equal tariffs in response to the US duties, aiming to protect workers and businesses. Despite days of negotiations, Washington and Ottawa could not reach an agreement.

US Trade Representative Jamie Scott Greer stated that Canada declined to finalize the deal under previously agreed terms. The failure to reach a deal comes after President Trump praised Canada's prime minister and expressed hope for a trade agreement. Canada's top negotiator, Dominic LeBlanc, said further discussions were necessary.

Trump administration officials offered significant tariff reductions in sectors like steel, aluminum, autos, and lumber, but Canada rejected the last-minute changes as unfair, uneconomic, and questionable. Carney accused the US of discriminatory treatment of US alcohol, automobile, and dairy products, which led to the tariffs. Canada has sought relief from Trump's tariffs on autos, steel, and aluminum, which have negatively impacted its economy and strained their trade relationship.