Tariffs of 50 percent on 20 billion dollars’ worth of Canadian imports took effect on Saturday, after last-minute negotiations between Washington and Ottawa failed to produce the deal that was meant to keep the two neighbours out of a trade war. Canada answered with retaliatory duties due to start on 8 September, aimed at American steel and dairy.
A narrow list with wide symbolism
The American measure covers goods including cement and hockey sticks, and the targeted imports account for roughly 5.5 percent of Canada’s total exports. The duties had been announced in July and were set to begin on Wednesday, but Canada was given three additional days that were spent on a final attempt to salvage an agreement.
The new package hits products that are supposed to be shielded by the North American free trade agreement signed with the United States and Mexico, under which most Canadian goods enter the American market duty-free. It comes on top of tariffs imposed since last year on steel, aluminium and cars.
Two accounts of the breakdown
The two sides had been negotiating for weeks, and Canada’s trade minister spent the final week in Washington, where several difficult files were settled before the talks fell apart. Prime Minister Mark Carney said changes had been introduced to the American offer at the last minute and called them unfair, adding that Canada could not accept what was offered and would not concede what was demanded.
United States Trade Representative Jamieson Greer put the blame on Ottawa, saying Canada declined to close the deal on the terms that had been agreed, despite an American offer that would have given it better treatment than any other exporter. Greer said no further talks with the Canadians are scheduled, and that Washington is proceeding with measures in response to the Canadian move.
An economy tied to one market
About 70 percent of Canada’s total exports go to the United States. Ottawa had asked provincial and territorial authorities to end a boycott of American wine and spirits, while Carney has been working to reduce the Canadian economy’s dependence on its southern neighbour by seeking new trading partners in Asia and Europe.
The trade conflict began with Donald Trump’s return to the White House at the start of 2025, punctuated by his repeated assertion that he intends to make Canada the fifty-first state. Carney, who became prime minister in March 2025, summed up his reading of the episode by saying Canadians have realised that America has changed, and that the old relationship will not return.
This story was produced in the newsroom from the disclosed sources named above.
