The United States has imposed 50% tariffs on about $20bn worth of Canadian goods after trade negotiations between Washington and Ottawa failed to produce an agreement.
The tariffs took effect at 12:01am Eastern Time on Saturday after US President Donald Trump’s deadline expired without a deal.
The latest measures affect about 5% of Canada’s exports to the US, including electronics, industrial machinery and dairy products. They come on top of existing American tariffs on Canadian steel, lumber and automobiles.
Canadian Prime Minister Mark Carney said Ottawa would respond by matching the US tariffs “dollar for dollar”.
Carney said Canada had made progress during the negotiations but that the outcome did not go far enough to protect the country’s interests.
“In recent weeks, we made important progress,” Carney said. “However, that progress has not been enough to meet our objectives for Canadians.”
He also said the Canadian government would introduce additional measures to support workers and businesses affected by the trade dispute.
The negotiations followed months of escalating tensions between the two neighbouring countries. Trump had repeatedly threatened Canada with additional tariffs, while Ottawa responded with its own retaliatory measures.
US Trade Representative Jamieson Greer blamed Canada for the failure of the latest negotiations, saying Ottawa had introduced new demands and backed away from previous commitments.
“Canada declined to finalise the trade deal under the terms agreed earlier this week,” Greer said.
The latest tariffs could put significant pressure on Canadian companies that depend heavily on access to the US market.
Trade expert Julian Karaguesian of McGill University warned that a 50% tariff could make hundreds of Canadian products too expensive for American consumers and businesses.
The US and Canada have one of the world’s most closely integrated trading relationships, making the latest escalation a major economic challenge for both countries.
For Canada, the impact could be particularly serious because the United States is its largest trading partner. Ottawa is now preparing its retaliatory measures as both sides face the possibility of a prolonged trade war.
