US Imposes 50% Tariffs on $20 Billion of Canadian Goods After Talks Collapse
Xinhua · 3 SOURCESabout 1 hour ago2 MIN
Summary
The United States and Canada failed to reach a trade deal on Friday, Aug. 22, with the White House announcing it would impose 50 percent tariffs on certain imports from Canada worth 20 billion US dollars. Canadian Prime Minister Mark Carney responded that Canada would match those tariffs "dollar for dollar" and suspended all trade negotiations with Washington. The breakdown raises serious questions about the future of the North American trade pact governing relations between the US, Canada and Mexico. Carney accused Washington of proposing "unfair, uneconomic" last-minute changes that "called into question the reliability of any deal," while the US trade representative blamed Canada for making new demands after terms were supposedly agreed earlier in the week.
Key Points
- US tariffs of 50 percent affect approximately 5 percent of Canada's annual exports to the United States
- Canadian goods targeted include products ranging from hockey sticks to medical tongue depressors
- Prime Minister Mark Carney said Canada has suspended negotiations and recalled negotiators to Ottawa
- US Trade Representative Jamieson Greer said Canada made "new demands and walk-backs" after terms were agreed
- Carney said the US last-minute changes were "unfair, uneconomic" and questioned Washington's reliability
Why It Matters
The breakdown threatens the North American trade pact that underpins hundreds of billions of dollars in cross-border commerce and jobs across the continent . With no further talks planned and both sides dug in, the dispute could reshape North American supply chains and strain a historic alliance built on integrated economies.
The breakdown threatens the North American trade pact that underpins hundreds of billions of dollars in cross-border commerce and jobs across the continent . With no further talks planned and both sides dug in, the dispute could reshape North American supply chains and strain a historic alliance built on integrated economies.