Azernews.Az

The United States has imposed 50% tariffs on around $20 billion worth of Canadian products, with Canada immediately vowing to retaliate after last-minute negotiations failed to resolve the latest dispute between the two countries.

The new tariffs, which took effect early Saturday, cover roughly 5% of Canada’s annual exports to the United States and affect a range of products, including hockey sticks, tongue depressors and other Canadian-made goods.

The move further escalates an already tense trade relationship between the two North American neighbours and raises fresh questions about the future of the US-Mexico-Canada trade agreement (USMCA).

Canadian Prime Minister Mark Carney said Ottawa would respond with equivalent measures.

“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Carney said in a statement.

Canada had been seeking concessions from Washington on tariffs affecting key sectors, including steel, aluminium, automobiles and lumber. However, the negotiations broke down shortly before the new measures took effect.

US Trade Representative Jamieson Greer blamed Canada for the collapse of the talks, saying Ottawa had rejected the terms of a proposed agreement.

“Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,” Greer said. He added that the United States had offered Canada “the best treatment of any major exporter to our market,” but accused Ottawa of introducing new demands and reversing previous commitments.

Carney rejected Washington’s account of the negotiations, saying the breakdown resulted from changes made by the US administration at the last minute.

“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney said.

He subsequently suspended negotiations and instructed Canada’s negotiating team to return to Ottawa.

Carney also said the Canadian government would announce additional measures to support workers and businesses affected by the tariffs in the coming days.