International
US, Canada Fail to Reach Trade Deal as Tariff Dispute Deepens
The United States and Canada have failed to reach a trade agreement, with the breakdown in negotiations followed by new US tariffs on certain Canadian...
By Wavers Multimedia
The two countries were unable to conclude a deal on Friday after last-minute changes proposed by the US side were rejected by Canada. Canadian Prime Minister Mark Carney said the changes were considered unfair and uneconomic, leading Canada to suspend the negotiations and recall its negotiators to Ottawa.
The White House subsequently moved ahead with 50 percent tariffs on $20 billion worth of Canadian goods. The new tariffs took effect shortly after midnight on Saturday.
Carney said Canada would respond by matching the US tariffs “dollar for dollar” to protect Canadian workers and businesses. He also said his government would introduce additional measures to support businesses and workers affected by the dispute.
The collapse came only days after both sides appeared close to an agreement. US President Donald Trump had announced on Tuesday that tariffs scheduled to begin Wednesday would be delayed for three days, saying the US and Canada had reached a deal that only required the completion of formal documents.
Carney later acknowledged that substantial progress had been made, although he said important issues remained unresolved.
The latest disagreement has raised fresh concerns for businesses on both sides of the border. Candace Laing, president and CEO of the Canadian Chamber of Commerce, described the collapse as a major setback for North American competitiveness.
Canadian business groups have also warned that the new tariffs could put pressure on small exporters, with some companies potentially losing access to the US market.
The dispute comes as the United States, Canada and Mexico face negotiations over the future of the US-Mexico-Canada Agreement (USMCA), the trade pact that replaced NAFTA in 2020.
The United States has already begun formal discussions with Mexico on revising the agreement, while negotiations with Canada have yet to begin.
The latest developments mark a sharp reversal in US-Canada trade relations, coming just days after both countries indicated that an agreement was within reach.