Canada to match Trump's 50% tariffs dollar for dollar after trade talks collapse
Canada and the United States failed to reach a trade agreement by their midnight deadline, prompting Prime Minister Mark Carney to vow matching tariffs to protect Canadian workers and businesses. The US tariffs will affect roughly $20bn worth of Canadian exports.
Canadian Prime Minister Mark Carney has pledged to respond to new US tariffs "dollar for dollar" after negotiators from both countries failed to finalize a trade deal before the Friday midnight deadline.
In a statement, Carney said Canadian officials had negotiated in good faith, but last-minute changes to the terms proposed by the United States were unfair, uneconomic, and undermined confidence in the reliability of any agreement reached. He confirmed that Canada would impose matching 50% tariffs to shield domestic workers and businesses.
The US tariffs are expected to affect roughly $20bn worth of Canadian goods, after last-ditch talks failed to defuse the latest source of tension between the two long-standing allies.
Washington blames Canadian demands
US Trade Representative Jamieson Greer said in a statement issued shortly before midnight Friday that Canada had declined to finalize the deal under terms both sides had agreed earlier in the week. Greer said that despite Washington's offer to give Canada the most favorable treatment of any major exporter to the US market, new Canadian demands and reversals of prior commitments disrupted the balance the two sides had carefully worked out.
Economic and political stakes
The tariffs imposed by President Donald Trump are set to hit about 5% of Canada's annual exports to the United States, covering products ranging from hockey sticks to tongue depressors. Still, observers note the political fallout is likely to outweigh the direct economic impact, given that the two countries exchanged $880bn in goods and services last year.
The tariffs had originally been due to take effect at 12:01am Wednesday, but Trump extended the deadline by three days to allow further negotiations. Despite the extra time, the two sides were unable to reach an agreement.
