US imposes 50% tariffs on 20 billion of Canadian goods after trade talks collapse
The United States imposed 50 percent tariffs on $20 billion worth of Canadian goods early Saturday after last-ditch trade negotiations between the two countries collapsed late Friday.
U.S. Trade Representative Jamieson Greer said Canada “declined to finalize the trade deal under the terms agreed earlier this week,” adding that “new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.” The tariffs, announced under Section 338 of the Tariff Act of 1930, target about 5 percent of Canadian exports to the U.S., including electronics, industrial machinery, dairy products, alcohol, hockey equipment, and cement .
Canadian Prime Minister Mark Carney suspended negotiations and recalled his negotiating team to Ottawa, stating that “last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.” Carney vowed that Canada would match the U.S. tariffs “dollar for dollar to protect our workers and businesses” and announced plans to introduce measures supporting affected workers and businesses in the coming days .
The tariffs took effect at 12:01 a.m. ET Saturday, following a three-day extension of the original Wednesday deadline by President Donald Trump. The administration had previously exempted key Canadian exports such as energy, potash, and critical minerals from the new duties .
Trade between the U.S. and Canada totaled $376 billion in the first half of 2026, according to U.S. Census data, making Canada the second-largest U.S. trading partner after Mexico. The new tariffs add to existing U.S. duties on Canadian steel, lumber, and autos, which had already prompted retaliatory measures from Ottawa .
Greer described the failed agreement as a “missed opportunity for Canada to partner with the United States,” noting that the U.S. had offered “the best treatment of any major exporter to our market” and proposed reductions in tariffs on steel, aluminum, autos, and lumber in exchange for Canadian concessions. Carney, however, maintained that the progress made in recent weeks “has not been enough to meet our objectives for Canadians” .
No further talks have been scheduled. The breakdown follows weeks of negotiations, including a meeting between Canada’s Trade Minister Dominic LeBlanc and Greer on Thursday, which had initially raised hopes of a compromise .
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