The United States imposed 50% tariffs on about $20 billion worth of Canadian goods Saturday after days of negotiations between the two longtime allies broke down, escalating tensions between President Donald Trump and Canadian Prime Minister Mark Carney.
The new duties, which took effect shortly after midnight, represent just over 5% of Canada’s exports to the United States. They target a range of products, including cement, furniture, clothing, fishing equipment and hockey gear, while adding to existing U.S. tariffs on Canadian steel, aluminum, lumber and automobiles.
The economic impact of the latest measures may be limited compared with broader U.S.-Canada trade, but the political consequences could be more significant. The dispute threatens to complicate negotiations over the future of the United States-Mexico-Canada Agreement, the North American trade pact that has underpinned billions of dollars in cross-border commerce.
Carney said Canada had suspended trade negotiations with Washington after the United States made last-minute changes to its proposed terms.
"I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa," Carney said in a statement.
