U.S.-Canada trade talks collapse, massive tariffs to take effect
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Trade negotiations between the U.S. and Canada collapsed Friday night, triggering a 50% tariff regime on Canadian goods. The breakdown marks an unprecedented rupture with America's second-largest trading partner.
US, Canada trade talks collapse, massive tariffs to take effect
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4 hours ago - Economy
U.S.-Canada trade talks collapse, 50% tariffs go into effect
* Ben Berkowitz ,
* Courtenay Brown
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!President Trump and Canadian Prime Minister Mark Carney speaking to each other, with Trump pointing an index finger at Carney.
*President Trump and Canadian Prime Minister Mark Carney at the July 2026 NATO summit. Photo: Harun Ozalp/Anadolu via Getty Images*
Trade talks between the U.S. and Canada fell apart late Friday night, and both sides said steep new tariffs will go into effect.
**Why it matters:** It's an unprecedented breakdown in relations with the second-largest U.S. trading partner.
**Catch up quick:** Trump last month threatened to invoke Section 338 of the Tariff Act of 1930 to hit a slew of Canadian goods with additional 50% duties, including alcohol, hockey equipment, cement and dairy products.
* No president has ever used Section 338 to impose tariffs since it became law in 1930.
* The tariffs were scheduled to take effect at 12:01 a.m. ET Wednesday. The administration carved out key Canadian exports, including energy, potash and critical minerals, from the new tariffs.
* On Tuesday, Trump postponed the tariffs for three days, saying the two sides had a deal.
**Driving the news:** They did not.
* U.S. Trade Representative Jamieson Greer said late Friday that Canada had made last-minute demands that upset the pact, Bloomberg reported.
* Canadian Prime Minister Mark Carney, in a statement posted to X, alleged it was the U.S. that had made late changes to the terms, and said he had decided to suspend the negotiations.
**Friction point:** "Canada will match those tariffs dollar for dollar to protect our workers and businesses," Carney wrote.
* The exact shape of that retaliation was not immediately clear.
**By the numbers:** Trade between the two countries totaled $376 billion in the first half of the year, per Census data — double China and trailing only Mexico.
**The bottom line:** After more than a year of threatening various stronger tariffs against Canada, the U.S. is making its most aggressive move yet to actually impose them.
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4 hours ago - Economy
U.S.-Canada trade talks collapse, 50% tariffs go into effect
* Ben Berkowitz ,
* Courtenay Brown
*
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!President Trump and Canadian Prime Minister Mark Carney speaking to each other, with Trump pointing an index finger at Carney.
*President Trump and Canadian Prime Minister Mark Carney at the July 2026 NATO summit. Photo: Harun Ozalp/Anadolu via Getty Images*
Trade talks between the U.S. and Canada fell apart late Friday night, and both sides said steep new tariffs will go into effect.
**Why it matters:** It's an unprecedented breakdown in relations with the second-largest U.S. trading partner.
**Catch up quick:** Trump last month threatened to invoke Section 338 of the Tariff Act of 1930 to hit a slew of Canadian goods with additional 50% duties, including alcohol, hockey equipment, cement and dairy products.
* No president has ever used Section 338 to impose tariffs since it became law in 1930.
* The tariffs were scheduled to take effect at 12:01 a.m. ET Wednesday. The administration carved out key Canadian exports, including energy, potash and critical minerals, from the new tariffs.
* On Tuesday, Trump postponed the tariffs for three days, saying the two sides had a deal.
**Driving the news:** They did not.
* U.S. Trade Representative Jamieson Greer said late Friday that Canada had made last-minute demands that upset the pact, Bloomberg reported.
* Canadian Prime Minister Mark Carney, in a statement posted to X, alleged it was the U.S. that had made late changes to the terms, and said he had decided to suspend the negotiations.
**Friction point:** "Canada will match those tariffs dollar for dollar to protect our workers and businesses," Carney wrote.
* The exact shape of that retaliation was not immediately clear.
**By the numbers:** Trade between the two countries totaled $376 billion in the first half of the year, per Census data — double China and trailing only Mexico.
**The bottom line:** After more than a year of threatening various stronger tariffs against Canada, the U.S. is making its most aggressive move yet to actually impose them.
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What to read next
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Tags:#التجارة الدولية#الرسوم الجمركية#الاقتصاد الأمريكي#كندا#ترامب#المفاوضات التجارية
Source: Axios
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