US, Canada fail to reach trade pact to avert new tariffs
The United States and Canada have failed to reach a trade agreement, leading the US to impose 50% tariffs on $20 billion worth of Canadian goods. Canadian Prime Minister Mark Carney has suspended negotiations in response to what he described as unfair and uneconomic US demands.
Why it matters
This trade dispute marks a significant escalation in tensions between two major economic partners, threatening to disrupt supply chains and economic recovery efforts.
The United States and Canada have failed to reach a trade deal, and the US said it would impose 50% tariffs on some imports from Canada.
A senior administration official said Section 338 tariffs on about $20 billion worth of Canadian goods would go into effect just after midnight (5am Irish time).
Canada's Prime Minister Mark Carney said he had suspended trade negotiations and Canada would retaliate dollar for dollar on the new tariffs.
The decision by the US administration followed three days of talks in Washington between Canada's Minister for Trade with the US, Dominic LeBlanc, and US Trade Representative Jamieson Greer.
"I have decided to suspend trade negotiations with the US and have directed Canada's negotiators to return to Ottawa," Mr Carney said in a statement.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in