US IMPOSES 50% TARIFFS ON $20BN OF CANADIAN GOODS AFTER TRADE TALKS COLLAPSE

The United States imposed 50 per cent tariffs on approximately $20 billion worth of Canadian goods on Saturday after trade negotiations between the two countries failed to reach agreement. The tariffs took effect after a deadline set by US President Donald Trump expired at 12:01am Eastern Time. Canadian Prime Minister Mark Carney said Canada would retaliate by matching the tariffs "dollar for dollar" and announced his government would introduce support measures for workers and businesses in coming days.

The affected goods represent about 5 per cent of Canada's annual exports to the United States and include electronics, industrial machinery, dairy products, hockey sticks and tongue depressors, in addition to products already subject to pre-existing US tariffs on steel, lumber and vehicles. US Trade Representative Jamieson Greer stated that Canada had "declined to finalise the trade deal under the terms agreed earlier this week" and accused Canada of making "new demands and walk-backs of other commitments". Carney blamed Washington for the breakdown, saying "last-minute changes in the US proposed terms were unfair, uneconomic and called into question the reliability of any deal", and announced he had suspended negotiations and directed Canada's team to return to Ottawa.

The dispute calls into question the future of the North American trade pact between the United States, Canada and Mexico, which is central to industry across all three countries. The breakdown followed three days of talks in Washington, DC. Carney stated that while Canada had made "important progress toward improving Canada's position as having the best deal in the world with the US", that progress had not been sufficient to meet Canadian objectives.