US to impose 50% tariffs on Canadian imports worth $20 billion as historic allies fail to reach a deal: What we know

The United States has announced it will impose 50% tariffs on $20 billion worth of Canadian imports following their inability to reach an agreement during last-minute negotiations, according to Bloomberg. The tariffs will take effect at 12:01 am on Saturday (local time) and will apply to hundreds of items imported from Canada, such as plywood, liquor, electrical equipment, and hockey gear.

The two nations had been in talks for weeks, with a draft deal proposed that would have seen the US reduce tariffs on certain Canadian steel and aluminum by 25% and lower duties on Canadian automobiles to 15%. In return, Canada was expected to remove its retaliatory measures from last year, when the US President initiated a trade war.

The White House was reportedly seeking concessions like eliminating Canada's counter-tariffs on American vehicles and lifting the ban on US alcoholic beverage sales in most provinces. Tensions have escalated between the two longtime allies, with trade between them amounting to nearly $900 billion in goods and services last year.

President Donald Trump has also made controversial remarks about Canada, such as considering it a US state, calling its prime ministers "governors," and questioning its economic dependence on the United States. This story is ongoing, with more details expected to emerge.