Canadian Prime Minister Mark Carney has suspended trade negotiations with the United States after the two sides failed to reach an agreement ahead of a Friday night deadline, warning that Ottawa would respond to new US tariffs “dollar for dollar”.
Announcing the decision, Carney said the US was preparing to impose 50% tariffs on roughly $28 billion worth of Canadian goods from midnight. Canada, he said, would impose reciprocal tariffs on US goods to protect Canadian workers and businesses.
The two countries had been engaged in three days of negotiations in Washington aimed at reaching a deal and preventing the new tariffs. Carney said the talks had made “important progress” but ultimately failed to produce an agreement that met Canada's objectives.
“As a result, this evening, I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa,” Carney said.
US Trade Representative Jamieson Greer offered a different account of the breakdown, saying Canada had walked away from the negotiating table despite progress towards a deal.
Greer said Washington had offered Canada the best treatment of any major exporter to the US, but claimed that new demands and reversals of previous commitments by Ottawa had disrupted the balance reached during the talks.
A senior US official said Canada was seeking concessions that Washington was unwilling to provide, particularly in the automotive, steel, aluminium and lumber sectors.
The official also warned that if Canada retaliated against the new tariffs, President Donald Trump would be given options to “level out the playing field once again.”
US Customs and Border Protection issued guidance to importers shortly before Greer's briefing, stating that tariffs on specified Canadian products would take effect after 12:01 am.
The new measures affect a relatively small share of Canadian exports but come on top of existing US tariffs on steel, lumber and automobiles. They could put further pressure on Canada's economic recovery and complicate broader negotiations over a free-trade agreement.
The tariffs will also apply to Canadian goods eligible for preferential treatment under the US-Mexico-Canada Agreement, which has shielded much of Canadian industry from earlier US tariffs.
The latest breakdown leaves the two neighbours facing renewed tensions, with Canada preparing reciprocal measures as Washington moves ahead with the new tariffs.
