The United States has officially imposed 50 percent tariffs on approximately $20bn worth of Canadian goods. This move follows the collapse of three days of intensive trade negotiations in Washington, DC, which failed to produce a final agreement before the deadline set by US President Donald Trump expired at 12:01am Eastern Time (04:01 GMT) on Saturday.
Canadian Prime Minister Mark Carney responded to the announcement by vowing that his government would match the new tariffs “dollar for dollar.” While acknowledging that recent weeks had seen progress toward securing a favorable trade position for Canada, Carney stated that the final terms did not meet the country’s essential objectives. He added that Ottawa will introduce new measures in the coming days to support Canadian workers and businesses affected by the escalating trade dispute.
US Trade Representative Jamieson Greer placed the responsibility for the breakdown on Canada, characterizing the outcome as a missed opportunity for a partnership. Greer stated that Canada declined to finalize the deal based on terms agreed upon earlier in the week. According to the US representative, Canada’s introduction of new demands and the reversal of previous commitments undermined the balance of the negotiations, despite the US offering the best treatment available to any major exporter.
The newly implemented tariffs target roughly 5 percent of Canadian exports to the US, specifically impacting electronics, industrial machinery, and dairy products. These measures supplement existing US tariffs already in place on Canadian steel, lumber, and automobiles. The Trump administration initially announced these specific tariffs in July, citing what the president described as the “discriminatory treatment of American products” by Canada.
This latest development marks a continuation of the trade tensions that have persisted since President Trump imposed initial tariffs on key Canadian imports early in his second term. Although Trump had suggested to reporters on Friday that a deal remained possible, those expectations did not materialize. Trade experts, including Julian Karaguesian of McGill University, have warned that a 50 percent tariff rate could effectively price hundreds of Canadian products out of the American market, further straining the economic relationship between the two nations. The report also notes that with Trump periodically introducing new tariff threats, the two countries have gone back and forth ever since. The report also notes that for now, but Trump told reporters on Friday that he expected a deal with Canada could be reached – something that ultimately did not prove to be correct.
Source: Al Jazeera
