US hits Canadian goods with 50pc tariffs after trade talks fail

The United States has imposed 50 percent tariffs on select Canadian goods, effective immediately, following the collapse of trade negotiations between the two nations. The tariffs target approximately $20 billion worth of Canadian products, accounting for more than 5 percent of Canada's total exports to the U.S. Prime Minister Mark Carney announced the suspension of trade talks and vowed to retaliate with equally sized tariffs.

Canada's trade negotiations were suspended, with Carney stating that the US proposed terms were "unfair, uneconomic, and called into question the reliability of any deal." Canada's negotiators returned to Ottawa after working diligently and in good faith during the talks. The U.S. imposed the tariffs in response to Canada's last-minute changes to the proposed terms.

The White House suggested that the U.S. offer would have put Canada in the best tariff position among major exporters to the United States. The decision comes after Canada sought additional concessions, particularly on steel, aluminum, autos, and softwood lumber. The new tariffs affect various industries, including wooden ice hockey sticks, steel, lumber, autos, wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. This move may lead to job losses and business closures in vulnerable sectors.