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

Trade negotiations between the United States and Canada collapsed late Friday just minutes before a midnight deadline, setting the stage for 50 percent tariffs on roughly 20 billion dollars worth of Canadian exports to take effect. Canadian Prime Minister Mark Carney suspended talks and ordered his negotiators home, accusing the Trump administration of injecting last-minute changes that were unfair and undermined any prospect of a reliable agreement.

Carney announced the breakdown in a statement on social platform X, saying important progress had been made in recent weeks but fell short of Canadian objectives. He singled out the United States for shifting terms at the eleventh hour and vowed that Canada would respond with matching tariffs dollar for dollar to shield its workers and businesses. The move came after weeks of intense discussions that followed President Donald Trump's earlier threat to impose the steep duties by mid-August.

US Trade Representative Jamieson Greer offered a sharply different account, claiming Canada had refused to finalize a deal on terms agreed earlier in the week. Greer said new demands and walk-backs by Ottawa had upended a careful balance, despite Washington's offer of the best treatment given to any major exporter. A senior Trump administration official told reporters that Canada had sought concessions on steel, aluminum, autos and lumber that the United States was unwilling to grant.

The tariffs, which cover about 5 percent of Canadian shipments to the United States, hit goods ranging from wooden hockey sticks to tongue depressors. Energy products, potash and critical minerals were carved out of the duties. Carney said additional support measures for affected Canadian industries would be unveiled in coming days.

The breakdown marks a sharp escalation in tensions between the two longtime allies and is likely to complicate efforts to renew the US-Mexico-Canada trade agreement. Carney, who won election last year on a platform of standing firm against Trump, has maintained strong domestic support, with polls showing most Canadians opposed to further concessions. Both sides traded accusations through the night, leaving the immediate future of bilateral trade relations in doubt.