<>
The United States and Canada failed to reach a trade agreement before a midnight deadline, leaving a 50 percent tariff on a broad range of Canadian goods to take effect, according to announcements made by both governments. President Donald Trump to allow negotiators more time to secure a deal.
Negotiations collapsed late Friday night just hours before the measures took effect at midnight local time, or 6:00 a.m. CEST. According to U.S. Trade Representative Jamieson Greer, the breakdown occurred after Canada rejected the proposed terms during final discussions.
United States Cites Late Reversals in Trade Talks
U.S. Trade Representative Jamieson Greer stated during a telephone press conference that Canada backed away from previously agreed-upon conditions. According to Greer, the U.S. offered Canada market access matching the best treatment given to any major exporter, but late demands from Ottawa dismantled the progress made earlier in the week.
The tariffs target approximately $20 billion worth of Canadian exports to the United States. While this figure represents a relatively small share of total Canadian exports, the action marks the first time Washington has levied duties on goods explicitly covered under the North American free trade framework. Affected items include wine, hockey sticks, furniture, and dairy products.
Canada Rejects Unfair Conditions and Announces Retaliation
Canadian Prime Minister Mark Carney defended his government’s position by stating that last-minute adjustments proposed by the U.S. side were unfair, uneconomic, and undermined the reliability of any potential pact. According to Carney, he instructed Canadian negotiators to return to Ottawa immediately following the breakdown.
Carney also announced that Canada intends to respond with retaliatory tariffs on U.S. products of equivalent value. The swift escalation shatters earlier optimism expressed by Canadian officials. Dominic LeBlanc, the Canadian minister overseeing the portfolio, had reported positive momentum and constructive discussions with Greer in Washington just hours before the talks failed.
Timeline and Next Steps in the Tariff Dispute
The newly imposed duties were originally scheduled to take effect on a Wednesday before President Trump extended the deadline by three days to accommodate ongoing negotiations. With delegations departing Washington without a framework, commerce in cross-border goods now faces immediate disruption as both governments implement their respective border measures.
>
Related reading