New York : The United States and Canada failed to reach a trade agreement after three days of negotiations in Washington, with the US preparing to impose 50% tariffs on certain Canadian imports. A senior Trump administration official said the Section 338 tariffs, affecting around $20 billion worth of Canadian goods, would come into effect shortly after midnight on Saturday.
Canadian Prime Minister Mark Carney said Ottawa had suspended trade negotiations and would respond with dollar-for-dollar retaliatory tariffs. The breakdown followed talks between Canada’s minister for trade with the US, Dominic LeBlanc, and US Trade Representative Jamieson Greer. Carney said the countries had been “making important progress” towards a deal but could not reach an agreement that met Canada’s objectives. He directed Canadian negotiators to return to Ottawa.
A US official said Canada was seeking concessions that Washington was unwilling to provide, particularly on automobiles, steel, aluminium and lumber. The official warned that if Canada retaliates against the 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 stating that tariffs on specified Canadian products would take effect after 12:01 a.m.
Donald Trump’s import taxes will hit about 5% of what Canada ships to the US every year, including products ranging from hockey sticks to tongue depressors. But the political impact will likely be even bigger than the economic fallout. The countries sold each other $880bn worth of goods and services last year. The tariffs were initially supposed to kick in at 12.01am Wednesday. Trump extended the deadline for three days to allow talks to continue, but the two countries still could not reach an agreement in time.
