Trade war returns? US-Canada deal falls apart at last minute
US-Canada trade talks ended without an agreement. As a result, Washington imposed 50% tariffs on some Canadian goods, while Ottawa vowed to respond with similar measures, according to CNN.
Canadian Prime Minister Mark Carney said the talks failed to produce an agreement that would meet the goals of his government.
"As a result, this evening, I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa," Carney said.
Meanwhile, the US 50% tariffs on Canadian goods worth about $20 billion have already taken effect. They apply to roughly 5% of all US imports from Canada last year.
Carney said Ottawa would impose reciprocal tariffs on US goods.
"Canada will match those tariffs dollar for dollar to protect our workers and businesses," he stressed.
Why the deal fell apart
Talks between Trump and Carney, as well as trade representatives from the two countries, continued throughout the week. A day earlier, the US president had even said a deal had been reached, but noted that it still needed to be finalized.
Ultimately, the sides failed to agree on the final terms.
US Trade Representative Jamieson Greer said Washington had offered Canada more favorable terms than those offered to other major exporters. According to him, the US proposal included significant tariff reductions on steel, aluminum, automobiles and lumber.
Greer also said the US had offered a broader economic and security partnership.
Carney, for his part, said last-minute changes to the US proposal were unacceptable.
According to him, they "were unfair, uneconomic and called into question the reliability of any agreement."
As previously reported, on August 19, US President Donald Trump postponed the implementation of 50% tariffs for three days. He explained the decision by saying that the US and Canada had reached an agreement, but the document still needed final approval.
