US set to impose 50% tariffs on Canadian imports worth $20 billion

The United States is poised to impose 50% tariffs on $20 billion worth of Canadian imports, following the failure to reach a last-minute trade deal. This move comes into effect at 12:01 am on Saturday (local time) and will target hundreds of items imported from Canada, such as plywood, liquor, electrical equipment, and hockey gear, according to the Associated Press (AP).

Both nations had been negotiating for weeks, with a draft agreement proposed that aimed to reduce tariffs on certain Canadian steel and aluminum to 25% and decrease duties on Canadian automobiles to 15%. However, the negotiations ultimately fell apart after Canada refused to finalize the deal based on the original terms agreed upon earlier in the week.

Canada had been lobbying for relief from existing US tariffs on steel, aluminum, automobiles, and lumber, but the US was unwilling to grant these concessions. A senior Trump administration official revealed that the US Trade Representative, Jamie Jan Greer, cited Canada's last-minute demands and reversals as the reason for the collapse of the negotiations.

Despite the US offering what they described as "a historic economic and national security partnership," Canada opted to reject the deal, leaving the US to impose the new tariffs.