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The United States and Canada failed to reach a deal Friday that would have averted 50% levies President Donald Trump promised last month, further souring the trade relationship between two of North America’s largest economies.
The news comes after a month of negotiations between the two trading partners following Trump’s order for 50% tariffs on $20 billion worth of Canada imports, including raw agricultural and natural materials, chemicals, textiles, consumer goods, wood products, paper, machinery and tools.
“In recent weeks, we made important progress toward improving Canada’s position as having the best deal in the world with the U.S. However, that progress has not been enough to meet our objectives for Canadians,” Canada Prime Minister Mark Carney said in a statement Friday. “As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa.”
Carney said he made the decision due to “last-minute changes” the U.S. proposed that “were unfair, uneconomic, and called into question the reliability of any deal.” Meanwhile, the U.S. blamed Canada for the breakdown.
