Trump’s 50% tariffs on Canada take effect after talks fall through
WASHINGTON —
President Donald Trump’s 50% tariffs on $20 billion of Canadian goods took effect overnight Saturday after final-hour trade talks collapsed, escalating a feud with one of America’s closest economic partners, and Canada announced Saturday that it would impose retaliatory tariffs on U.S. goods beginning Sept. 8, according to reports.
Trump pushed back his original deadline for new levies earlier this week because he said a deal was nearly complete, but that changed as both sides accused each other of upending talks by adding last-minute demands.
“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,” U.S. Trade Representative Jamieson Greer wrote in a social media post just after midnight Saturday.
Greer said the Trump administration offered concessions, including reducing some of the president’s previous tariffs on steel, aluminum, autos and lumber. He also expressed frustration that Canada is continuing to maintain retaliatory measures against the United States, including prohibitions on certain American goods.
In a letter posted to social media, Canadian Prime Minister Mark Carney said he sent his trade negotiators back to Ottawa and pledged to match Trump’s new tariffs “dollar for dollar.” He said that progress had been made toward improving Canada’s economic position, but the relief did not go far enough in the end.
“We have recognised from the beginning that America has changed, and that we will not return to our old relationship,” Carney wrote. “Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline.”
Trump did not immediately comment on the collapsed talks. Speaking to reporters Friday afternoon, he continued to express optimism that a deal with Canada was in reach, adding, “I only make good deals.”
Later Friday, Trump touted tariffs as a centerpiece of his economic agenda during a campaign event in South Carolina. He said manufacturing is expanding and the United States is “making a fortune” with tariffs.
This weekend’s developments inject more uncertainty into the future of the United States-Mexico-Canada Agreement, a trade pact reached during Trump’s first term that his administration recently declined to renew on a long-term basis. The U.S. has begun formal talks with Mexico already, but that is not the case for Canada, and it’s not clear when there may be an appetite to return to the negotiating table.
Earlier this year, the Supreme Court blocked one major tool that the president used to impose sweeping global tariffs — declaring an economic emergency. Since then, the president has turned to other legal tools.
In this case, Trump is using a never-before-used section of a Great Depression-era law by claiming that Canadian policies unfairly discriminate against American exports of cars, alcohol and dairy compared with other countries.
If Trump’s new 50% tariffs on Canadian goods remain in place for an extended period, critics warn that they could raise prices for consumers in the United States. Companies often pass on added costs of tariffs to customers.
