Canada's prime minister suspended trade talks with the US as 50 percent tariffs took effect, hitting 20 billion dollars in Canadian exports.
Trade talks between Washington and Ottawa broke down late Friday night, triggering 50 percent tariffs on a large share of Canadian goods that took effect at midnight. Canadian Prime Minister Mark Carney pulled his negotiators out of the room after concluding the two sides had run out of runway on a deal.
What Carney Said Went Wrong
Carney told the public that real progress had been made over the previous weeks but that it fell short of what Canada needed. "That progress has not been enough to meet our objectives for Canadians," he said in a statement issued just before the deadline. He added that he had ordered Canada's negotiating team back to Ottawa and would suspend the talks rather than accept terms he viewed as damaging.
He was blunt about the reason. Carney said last minute changes to the American proposal were unfair and unpredictable, and that they undercut confidence in any agreement that might have followed. "We have recognised from the beginning that America has changed, and that we will not return to our old relationship," he said, adding that Canada would not let another country dictate its future.
The Dollar Value Behind the Dispute
The tariffs apply to roughly 20 billion dollars worth of Canadian exports into the United States, according to figures from the U.S. Trade Representative's office. Products caught in the new duties range from hockey sticks and certain building materials to liquor and specific clothing categories. Carney said Canada would answer in kind, matching the tariffs