The United States has imposed 50% tariffs on $20bn worth of Canadian goods after high-stakes trade talks between the two countries collapsed, marking a sharp escalation in tensions between the longtime allies.

Key facts

  • The US has imposed 50% tariffs on $20bn worth of Canadian goods.
  • The move follows the failure of trade talks between Washington and Ottawa.
  • Canadian Prime Minister Mark Carney has suspended trade talks with the US.
  • Carney said Canada will match the US tariffs "dollar for dollar."
  • Carney described the US measures as "unfair" and "uneconomic."

Talks break down

Negotiations between the two sides continued as a midnight deadline set by President Donald Trump loomed, but the discussions ultimately failed to produce an agreement, paving the way for the steep new duties.

Canada vows retaliation

Prime Minister Mark Carney responded by suspending trade talks with the United States and announcing that Canada would match the American tariffs "dollar for dollar." He condemned the US action as "unfair" and "uneconomic," signaling that Ottawa is prepared for a prolonged trade dispute.

What comes next

With talks suspended and both sides imposing or promising tariffs, the dispute threatens to deepen economic strain between the two neighbors. Further developments are expected as Canada finalizes its countermeasures.