August 22, 2026 | 03:35 pm
TEMPO.CO, Jakarta - The United States imposed 50% tariffs on some Canadian products early Saturday after last-minute trade talks between Washington and Ottawa failed to produce a deal.
According to DW, the tariffs took effect at 12:01 a.m. EDT (0401 GMT), shortly after US Trade Representative Jamieson Greer said Canada had declined to finalize a trade agreement reached in principle earlier in the week.
“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week,” Greer told reporters.
Canadian Prime Minister Mark Carney, however, said Ottawa suspended the negotiations after the US made last-minute changes to the proposed terms, which he described as “unfair” and “uneconomic.”
“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney said, as quoted by DW.
He said Canada would retaliate immediately and match the US tariffs “dollar for dollar.”
Talks Collapse at the Last Minute
Washington and Ottawa had been racing to reach an agreement before the new tariffs took effect. The two sides had appeared close to a deal after US President Donald Trump temporarily paused his tariff threat earlier in the week, saying negotiations were in their final stages.
The proposed agreement was expected to lower US tariffs on Canadian-made vehicles from 25% to 15% and cut duties on Canadian steel and aluminum to 25%, according to Reuters.
But negotiations broke down Friday, with Canada's minister responsible for trade with the US, Dominic LeBlanc, saying the two sides still had work to do.
“We have more work to do. We're going to continue working up until the last minute. Our job is not finished,” LeBlanc told reporters after meeting Greer.
Trump had previously threatened to impose the 50% duties unless Canada reached a deal within 30 days.
The latest escalation comes as the US remains Canada's dominant export market, accounting for roughly 70% of Canadian exports, leaving Ottawa highly exposed to US trade measures.
The tariff dispute could further strain relations between the two neighbors as Carney faces pressure at home to resist further concessions to Washington.
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