US-Canada trade talks have collapsed after Washington imposed a 50% tariff on nearly $28 billion of Canadian goods, triggering an immediate threat of retaliation.
Prime Minister Mark Carney ordered Canada’s negotiators back to Ottawa and said the new US terms were unfair.
Washington accused Canada of adding demands and walking back earlier commitments during the final stage.
At 12:01 a.m. ET, the US imposed a 50% tariff on nearly $28 billion worth of Canadian imports. He also said Canada’s existing free trade agreements give the country preferential access to 1.5 billion consumers, with Ottawa aiming to double that market access by the end of this year. Canada’s Office of the Chief Economist said exports to the US fell 3.7% last year amid global economic shocks and trade tensions. At the same time, Canadian exports to markets outside the US rose 11.1%. Non-US markets now account for 32.8% of Canada’s total exports, or almost one-third of the country’s exports. Earlier reporting noted: Nearly 72% of Canada’s goods exports last year went to the United States.
Foreign direct investment in Canada is at its highest level in two decades, running at twice the rate of our nearest G7 competitor,” he said. “Our economy is creating jobs at four times the rate of the United States. Our exports to non-U.S. markets are on track to double over the next decade. The proposed package also included cooperation on critical minerals, aerospace supply chains and imports linked to forced labour. That is the highest share recorded in four decades. And the Trump administration might be wary of imposing a hefty new tariff – paid by US importers who try to pass along the cost to consumers via higher prices – ahead of November’s midterm elections. American voters are already frustrated with the high cost of living.
Earlier reporting noted: The two countries have wrangled for decades over trade, poking each other over sore spots like Canadian softwood lumber imports and US access to Canada’s protected dairy market.
