US hits Canada with 50% tariffs after trade talks collapse during final stages
The countries had been closing in on a deal but Mark Carney accused Washington of proposing "unfair and uneconomic" alterations
The US has imposed 50% tariffs on some Canadian goods after the anticipated trade deal between the countries collapsed in the final stages of talks.
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The longstanding allies were closing in on reaching an agreement, but in the early hours of Saturday it emerged they had failed to reach a deal.
The subsequent tariffs came into effect just after midnight US time on some $20 billion of Canadian goods, marking an increase in tensions between Donald Trump and Prime Minister Mark Carney.
Carney accused Washington of proposing "unfair and uneconomic" last-minute alterations to the deal, prompting Canada to withdraw.
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The products hit by the taxes vary from alcohol to hockey skates, and is expected to make further talks to renew the free-trade agreement more difficult.
Carney said in a statement: "I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa.
"They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute.
"However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
"Canada declined to finalise the trade deal under the terms agreed earlier this week," US Trade Representative Jamieson Greer said during a White House briefing.
"This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7."
A senior Trump administration official said that Canada had sought additional concessions, especially on steel, aluminium, autos and softwood lumber.
No additional talks are scheduled as the US implements the new duties, the official said.
Canada's refusal to back down is likely to be well received by its public after Carney's election last year based on his pledge to stand up to Trump.