Prime Minister Mark Carney announced Canada will impose retaliatory tariffs on the United States 'dollar for dollar' after the two countries failed to reach a trade deal before a midnight deadline. In a statement, Carney criticized the last-minute changes from the US side as 'unfair and uneconomic,' while questioning the reliability of any potential agreement.
Under the new measures, the US will apply a 50% tariff on approximately $20 billion worth of Canadian goods after last-ditch negotiations failed to resolve tensions between the two historic allies. US Trade Representative Jamieson Greer confirmed that Canada refused to finalize a deal under terms agreed upon earlier in the week, adding that Canada's new demands and withdrawn commitments had broken the balance achieved in recent days.
President Donald Trump's import tariffs will affect roughly 5% of Canada's annual exports to the US, including items ranging from hockey sticks to medical devices. However, the political impact could be far greater than the economic damage, as trade in goods and services between the two countries reached $880 billion last year.
The tariffs were initially set to take effect at 12:01 a.m. Wednesday, but President Trump extended the deadline by three days to facilitate negotiations. Despite this, the two sides were unable to reach an agreement within the allowed time.
