Canada imposes reciprocal tariffs after US-Canada trade talks collapse

Mark Carney suspended trade negotiations with the United States on Friday night and directed Canadian negotiators to return to Ottawa, triggering a fresh round of US tariffs on Canadian goods and matching Canadian counter-tariffs applied dollar for dollar.

Carney said last-minute changes to US proposed terms were unfair and uneconomic. US Trade Representative Jamieson Greer said Canada had walked back commitments and introduced new demands that upended a deal both sides had described as close to finalised earlier in the week.

Negotiators had been working toward an agreement that would reduce US tariffs on Canadian steel and aluminium from 50% to 25% and on autos from 25% to 15%. That framework is now suspended. The new US tariffs, originally threatened at 50% on roughly $20 billion in Canadian imports, came into effect Saturday.

Canada sends approximately 70% of its exports to the United States. Michigan, Kentucky, Indiana, and Ohio carry the highest exposure among US states. A Leger poll conducted before the breakdown found 56% of Canadians wanted Ottawa to make no further concessions.