Anna Hartz
The dispute could raise prices for businesses and consumers while adding fresh tension between two of America’s biggest trading partners.
Trade talks between the United States and Canada have reached a breaking point, with both sides now facing a new round of tariffs.
An unfavorable deal
Negotiations between the two countries collapsed late Friday after Canada refused to accept a deal it considered unfavorable, reports El Economista. The failure cleared the way for new US tariffs of 50% on about $20 billion worth of Canadian goods.
US Trade Representative Jamieson Greer blamed Ottawa for the breakdown. He said Canada had refused to finalize terms that Washington believed had already been agreed earlier in the week.
“Tonight, Canada refused to finalize the trade agreement on the terms agreed earlier this week,” Greer said in a statement.
Greer said the United States had offered Canada what he called the best possible deal among major exporters to the American market. He also accused Ottawa of making new demands and failing to meet other commitments.
The talks had continued for hours on Friday as officials tried to reach an agreement before the tariffs took effect. Just hours before the negotiations ended, President Donald Trump had said he remained hopeful that a deal could be reached.
Earlier in the week, Trump had delayed the tariffs to give negotiators more time. The two sides appeared to be making progress, but the remaining differences proved too difficult to overcome.
last-minute changes
Canadian Prime Minister Mark Carney said Canada had made significant progress during the negotiations. He blamed last-minute changes proposed by the United States for preventing a final agreement.
The new US tariffs will affect around $20 billion in Canadian imports. Products covered by the measures include hockey sticks, some construction materials, alcoholic drinks and certain clothing.
Canada has already warned that it will respond quickly. Carney said Ottawa would match the US tariffs “dollar for dollar” to protect Canadian workers and businesses.
The breakdown came only a day after Canadian Trade Minister Dominic LeBlanc met with Greer for several hours. LeBlanc said after the meeting that the countries were “very close” to an agreement and would continue working toward a deal.
The collapse of the talks now leaves businesses on both sides preparing for higher costs and another period of uncertainty in one of the world’s largest trading relationships.
