US imposes 50% tariffs on Canada

The United States imposed a 50% tariff on $20 billion worth of Canadian goods early Saturday, following the failure of last-minute negotiations aimed at resolving strained relations between the two historic allies. The tariffs, which took effect immediately, apply to hundreds of Canadian products, such as plywood, liquor, electrical equipment, and hockey gear.

Canada vowed retaliation, announcing that new duties on US goods would begin September 8. Canada's Prime Minister Mark Carney stated that the breakdown in trade talks was due to last-minute US changes that were perceived as unfair and economically detrimental. US Trade Representative Jamie Greer accused Canada of making 11th-hour demands that undermined a draft deal reached during negotiations.

The new tariffs are being imposed under the Section 338 provision of the Tariff Act of 1930, a rarely used law that allows the president to impose duties on nations deemed to unfairly discriminate against US commerce. The tariffs won't impact Canada's most crucial exports to the US, including oil, potash, and critical minerals. If the tariffs persist, Canada could lose approximately 90,000 jobs, primarily in sectors such as machinery, electronics, plastics and rubber, furniture, wood, paper, and chemicals.

Provinces like British Columbia, Ontario, and Quebec would be hit the hardest. The ongoing trade dispute threatens Canada's fragile economic recovery and negotiations for a free-trade pact with the US and Mexico.