After negotiators on both sides signaled a deal was imminent, the US imposed a staggering new 50 percent tariff on some Canadian goods, kicking off a fresh trade war that could cause economic havoc.
Representatives for the US and Canada were locked in trade negotiations for roughly a month before the agreement – which both sides said was close – fell through at the last minute.
Additional US tariffs on $20 billion worth of Canadian goods took effect on Saturday morning, with many imports ranging from hockey equipment to wine receiving higher rates.
Just 72 hours before, on August 19, when the tariffs were originally set to go into effect, Donald Trump extended a window for the two countries to continue negotiating ‘based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!’
But that gambit proved insufficient, and now both sides are blaming each other.
‘Canada has been ripping off the United States of America for years,’ Trump posted on social media Monday morning. ‘On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%.’
‘Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!’
American officials have blamed their Canadian counterparts for introducing new demands late in the negotiations, including those seeking lower rates on heavy trucks.
President Donald Trump released a furious statement on Monday morning accusing Canada of ‘ripping off the United States of America for years.’ On Saturday, the US imposted a new 50 percent tariff on some Canadian goods after negotiations on a trade deal fell through
‘Canada will match those tariffs dollar for dollar to protect our workers and businesses,’ Canadian Prime Minister Mark Carney said in a statement on Saturday shortly after the new rates went into effect
‘Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,’ said a statement from the US Trade Representative’s office.
‘In addition, Canada is continuing to maintain its prolonged retaliation against the United States, including, among other things, flat-out prohibitions on certain American goods and services.’
Likewise, Canadian Prime Minister Mark Carney and other Canadian officials have in turn blamed the Trump administration for changing their demands.
‘Canada will match those tariffs dollar for dollar to protect our workers and businesses,’ Carney said in a statement on Saturday shortly after the new rates went into effect.
The fallout could raise prices further ahead of the midterm election as US voters are already wary of inflated costs.
The US tariffs target a range of Canadian goods: lumber, steel, aluminum, alcohol, dairy, clothing, textiles, and more.
This is a breaking news story that will continue to be updated.
