Washington: The United States has imposed 50 per cent tariffs on around $20 billion worth of Canadian goods after negotiators from the two countries failed to reach a trade agreement before a deadline set by US President Donald Trump.
The tariffs came into effect at 12:01 am Eastern Time on Saturday after three days of negotiations in Washington ended without a deal.
Canada promises dollar-for-dollar response
Canadian Prime Minister Mark Carney said Ottawa would respond to the new measures with retaliatory tariffs on a dollar-for-dollar basis.
Carney said negotiations had made progress towards securing favourable trading terms for Canada, but the outcome had not gone far enough to meet the country’s objectives.
His government is also expected to introduce measures to support Canadian workers and businesses affected by the escalating trade dispute.
Tariffs target key Canadian exports
The new US duties will affect about five per cent of Canadian exports to the American market. Products facing the additional tariffs include electronics, industrial machinery and dairy goods.
They come on top of existing US tariffs covering Canadian steel, lumber and automobiles, increasing pressure on businesses operating across the closely connected North American economies.
US Trade Representative Jamieson Greer blamed Canada for the failure to conclude the agreement, saying Ottawa had introduced new demands and reversed some earlier commitments.
The latest measures mark another escalation in trade tensions between the two neighbours, with businesses and workers on both sides now facing uncertainty over the potential economic impact.