U.S. Imposes 50% Tariffs on $20 Billion of Canadian Goods as Ottawa Vows Retaliation

The United States imposed 50% tariffs on $20 billion worth of Canadian products, and Canada immediately said it would retaliate after last-ditch negotiations failed to resolve the latest strain in relations between the two longtime allies, Paul Wiseman and Rob Gillies reported for The Associated Press (AP).

US President Donald Trump and Canadian Prime Minister Mark Carney face renewed trade tensions after Washington imposed 50% tariffs on $20 billion of Canadian goods. [Photo: Canadian Club Facebook]

The new tariffs will affect about 5% of Canada's annual exports to the United States, including products ranging from hockey sticks to tongue depressors.

“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Canadian Prime Minister Mark Carney said.

The retaliation escalates the trade conflict and raises fresh questions about the future of the North American trade framework between the United States, Canada and Mexico, which is important to industries across all three countries.

Canada had sought concessions from Washington on tariffs affecting steel, aluminum, vehicles and lumber, but the United States was unwilling to provide the concessions Ottawa wanted, a senior Trump administration official said.

US Trade Representative Jamieson Greer said Canada had declined to finalize a trade deal under terms the United States believed had been agreed upon earlier in the week.

He accused Canada of making new demands and backing away from previous commitments.

Carney blamed Washington for the breakdown, saying last-minute changes to the US proposal were unfair and uneconomic. He said he had suspended negotiations and instructed Canada's negotiating team to return to Ottawa.

He also said his government would announce additional support for Canadian workers and businesses.