US-Canada trade deal collapses at last minute

The United States is set to impose 50% tariffs on nearly $20 billion of Canadian imports starting Saturday, following failed last-minute talks between the two long-standing allies, US Trade Representative Jamieson Greer announced. Canada had declined to finalize the deal despite a US offer that would have provided Ottawa with more favorable access to the American market, accusing Canada of continuing retaliation against US goods.

The Section 338 tariffs on specific Canadian imports are set to take effect at 12:01 a.m. EDT on Saturday. US officials claimed the offer would have substantially reduced tariffs and put Canada at the best position among exporters to the US. Canada's Prime Minister Mark Carney responded, calling the US's last-minute changes unfair and economically unjust.

The breakdown occurred after three days of intense negotiations, with both sides nearing an agreement on reducing tariffs on certain goods. However, differences remained, particularly around US demands for dismantling what it deemed as discriminatory barriers to US exports. Canada maintained that it would not relent on its retaliatory measures imposed in response to US tariffs.

The trade relationship between the countries is valued at $880 billion annually, with the US moving ahead with imposing the tariffs despite the lack of further negotiations.