US hits $20B Canadian goods with 50% tariffs after talks collapse

Trade negotiations between the United States and Canada collapsed late Friday just hours before a midnight deadline leaving both sides trading accusations over who derailed the talks. The breakdown means 50 percent tariffs on roughly 20 billion dollars worth of Canadian goods took effect early Saturday affecting items from lumber and autos to hockey sticks and medical supplies.

Canadian Prime Minister Mark Carney suspended the negotiations and ordered his team back to Ottawa blaming sudden shifts from the Trump administration. He called the proposed terms unfair and said Canada would impose matching tariffs dollar for dollar to shield its own industries. Carney claimed important progress had been made in recent weeks but not enough to protect Canadian interests.

US Trade Representative Jamieson Greer offered a sharply different account. He said Canada walked away from terms that had been agreed earlier in the week after the United States offered the best treatment available to any major trading partner. Greer pointed to new demands and reversals by Ottawa that upset the balance reached during days of intense talks in Washington.

The tariffs represent a small slice of overall Canada US trade which topped 376 billion dollars in the first half of the year. Still they mark the sharpest escalation yet in tensions that began when President Trump threatened steep duties to force concessions on steel aluminum autos and lumber. Senior administration officials noted that Canada had sought broad relief in those areas but offered little in return while maintaining its own retaliatory measures.

Both nations now face higher costs on cross border shipments at a time when broader talks to update the US Mexico Canada agreement loom ahead. The latest impasse comes after Trump had paused the tariffs for three days citing hopes of a deal. That pause ended without agreement as negotiators failed to bridge gaps on core issues.

For American workers the tariffs aim to level a playing field long tilted by uneven rules and subsidies in Canada. Past trade pacts have often delivered gains for big corporations and foreign suppliers while leaving domestic manufacturers exposed. The current standoff underscores how quickly talks can unravel when one side refuses to honor earlier commitments.

Carney has promised new support measures for Canadian businesses in the coming days. On the US side officials continue to stress that fair reciprocal terms remain available if Ottawa returns to the table without fresh conditions. The episode leaves relations between the two neighbors strained and highlights the challenges of reaching lasting agreements when deadlines force rushed decisions.