US Imposes 50% Tariffs on Canadian Goods After Talks Collapse

The United States imposed 50% tariffs on some Canadian goods on August 22, after Washington and Ottawa failed to reach an agreement following several days of trade talks, according to infohub.kz.

The new tariffs affect approximately $20 billion of Canadian exports to the U.S., accounting for just over five percent of Canada's total shipments to the American market. The higher duties apply to certain consumer and industrial products.

As recently as August 20, both sides said they were close to a deal. Discussions had focused on reducing U.S. tariffs on Canadian cars, steel, and aluminum. However, at the last moment, the talks broke down.

Canadian Prime Minister Mark Carney said he had ordered a halt to negotiations with the U.S. and recalled the Canadian delegation to Ottawa. He stated that Washington had changed the terms of the deal at the last minute.

"The last-minute changes to the U.S. proposal were unfair, unworkable, and cast doubt on the reliability of any agreement," Carney said.

The U.S. side, for its part, accused Canada of refusing to finalize the deal on previously discussed terms. U.S. Trade Representative Jamieson Greer called the outcome a missed opportunity for Ottawa.

Following the imposition of the tariffs, Canada announced retaliatory measures. Carney said that starting September 8, Ottawa will impose tariffs on a wide range of American goods and intends to respond to U.S. actions "dollar for dollar." The restrictions will include products from the metallurgical, agricultural, and industrial sectors.

The new U.S. tariffs escalate the trade conflict between the two countries and could complicate further negotiations on the agreement between the U.S., Canada, and Mexico. At the same time, a significant portion of Canadian exports still enter the U.S. duty-free under existing trade rules.

Earlier, the U.S. had already imposed separate tariffs on Canadian steel, aluminum, automobiles, and lumber. According to the Canadian government, the U.S. rate on steel and aluminum is 50%, on cars and trucks 25%, and on lumber 10%.