US-Canada trade talks fail: Trump's 50 % tariffs begin today midnight; Ottawa warns retaliation
PTC News Desk: Canadian Prime Minister Mark Carney has suspended trade negotiations with the United States after both the sides failed to reach an agreement ahead of Friday deadline.
Canadian Prime Minister Mark Carney announced that the United States was set to impose 50% tariffs on around $28 billion worth of Canadian goods from midnight. In response, Canada said it would impose similar tariffs on US products to protect its workers and businesses.
“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.
The two countries had held three days of talks in Washington to reach a trade deal and avoid the new tariffs. Carney said the negotiations made “important progress” but failed to result in an agreement that met Canada’s goals.
However, US Trade Representative Jamieson Greer gave a different version of events. He claimed that Canada had walked away from the negotiations despite progress towards a possible deal.
According to Greer, the US had offered Canada favourable treatment, but new demands and changes in Canada’s earlier commitments disrupted the talks. A senior US official said Canada was seeking concessions in sectors such as automobiles, steel, aluminium and lumber that Washington was unwilling to accept.
The official also warned that if Canada responded with retaliatory tariffs, President Donald Trump could take further steps against Canada.
Meanwhile, US Customs and Border Protection announced that the new tariffs on selected Canadian products would take effect after 12:01 am.
Although the new tariffs affect only a small portion of Canadian exports, they come in addition to existing US tariffs on steel, lumber and automobiles. The measures could put more pressure on Canada’s economy and create further difficulties in trade negotiations.
The tariffs will also apply to some Canadian goods that previously received preferential treatment under the US-Mexico-Canada Agreement. The breakdown in talks has once again increased trade tensions between the two neighbouring countries, with Canada now preparing retaliatory measures.
- With inputs from agencies
