US-Canada Trade Talks Collapse, Testing Limits of Trump's Aggressive Trade Strategy

The collapse of US-Canada trade talks is the latest sign that President Donald Trump's aggressive approach to remaking US trade relationships may be reaching its limits, David J. Lynch reported for The Washington Post.

Trump's administration sought to use an untested legal authority to pressure Canada into accepting major trade concessions.

Instead, Canadian Prime Minister Mark Carney suspended negotiations after the two sides failed to resolve their differences over the terms of a proposed agreement.

As a result, new 50% US tariffs took effect Saturday on a range of Canadian products, including alcohol, hockey equipment, construction materials and dairy products.

Canada said it would retaliate dollar for dollar, with its countermeasures scheduled to take effect Sept. 8.

The breakdown came after Trump had temporarily delayed the tariffs while negotiators worked toward an agreement.

The two sides had appeared close to a deal, but the negotiations collapsed late Friday after disagreements over the final terms.

The episode comes as the Trump administration faces challenges on several trade fronts.

The president has pursued a strategy centered on tariffs and reciprocal trade agreements, seeking concessions from trading partners in exchange for lower US tariffs.

Wendy Cutler, a former US trade negotiator and senior vice president at the Asia Society Policy Institute, described the collapse as a setback for Trump's trade policy. She said other countries could closely watch the outcome as they assess whether US demands are becoming increasingly difficult to accept.

The collapse also raises questions about the durability of other trade arrangements negotiated by the Trump administration.

The US has reached trade agreements or frameworks with several countries, including Malaysia, Cambodia and Argentina, as well as arrangements involving the European Union, United Kingdom and Japan.