Canada to Impose Equivalent Tariffs on US Imports Following Failed Trade Talks

Heavy US tariffs on certain Canadian exports took effect on Saturday after protracted negotiations between Washington and Ottawa collapsed without an agreement.

Canadian Prime Minister Mark Carney declared his government will respond with equivalent tariffs “dollar for dollar” to shield domestic workers and industries from the imposed duties. The tariffs, targeting approximately $20 billion in Canadian goods, were originally scheduled to begin midweek but were temporarily delayed prior to their implementation on Saturday. US Trade Representative Jamieson Greer stated late Friday that Canada had declined to finalize the deal under previously agreed terms. He noted US offers to reduce tariffs on steel, aluminum, and lumber in exchange for Canadian concessions.

The standoff followed intense discussions on Friday, including a meeting between Carney’s chief negotiator Dominic LeBlanc and Greer. Despite US proposals for significant reductions in duties on key sectors like autos and steel, Canada rejected the terms as “unfair” and “uneconomic,” citing last-minute changes that undermined deal reliability. The US White House had previously accused Canada of discriminatory practices against US products, particularly in liquor, automotive, and dairy markets.

The deadlock follows a series of emergency talks in Washington aimed at addressing decades-old trade disputes. Canada has sought relief from US tariffs on autos, steel, and aluminum, which have triggered job losses and strained the historically close bilateral relationship. Carney emphasized that the negotiations do not alter the fundamental shift in US-Canada relations, urging Ottawa to reduce its economic dependence on America, which accounts for roughly 70% of Canadian exports. Separately, both nations must negotiate updates to the USMCA trade agreement, which the Trump administration declined to renew last month.

(FRANCE 24 with AFP)

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