Trump’s 50% Canada Tariffs Take Effect as Carney Suspends Trade Talks and Vows Retaliation

Trump’s 50% Canada Tariffs Take Effect as Carney Suspends Trade Talks and Vows Retaliation

WASHINGTON — Trade negotiations between the United States and Canada have collapsed after Canadian Prime Minister Mark Carney suspended talks with Washington, accusing U.S. negotiators of making unfair and economically damaging changes to proposed trade terms at the last minute.

The breakdown came just before President Donald Trump’s new 50% tariffs on roughly C$28 billion of Canadian goods took effect. The tariffs, which began Saturday, target a range of Canadian products while some major sectors remain exempt.

Carney said Canada had negotiated in good faith but could not accept the revised U.S. proposals. In a statement, he described the last-minute changes as “unfair” and “uneconomic” and said they raised questions about the reliability of any future agreement.

Canada prepares dollar-for-dollar response

Carney has promised a matching response to the new U.S. tariffs, escalating the dispute between two of America's closest trading partners.

Canada announced that its retaliatory tariffs will target American products including steel, dairy, electronics, appliances, agricultural equipment, and other goods. The measures are scheduled to take effect September 8.

The latest confrontation represents a major setback after weeks of negotiations had raised hopes that Washington and Ottawa could reach a broader trade agreement.

What the tariffs could mean

The new duties affect billions of dollars in cross-border trade and could put additional pressure on businesses and consumers in both countries. Products affected by the U.S. tariffs include items such as wine, furniture, clothing, cement, electronics and hockey equipment.

The dispute also adds uncertainty to the future of the broader U.S.-Canada trade relationship and could create additional pressure on companies that depend heavily on cross-border supply chains.

For now, there are no new formal negotiations scheduled, leaving businesses on both sides of the border facing renewed uncertainty as the tariff dispute intensifies.

The latest developments mark a sharp escalation in the U.S.-Canada trade dispute, with both Washington and Ottawa now preparing for the economic consequences of a new round of tariffs.