At the stroke of midnight on Saturday, Canada unleashed a new 50 % tariff wall against U.S. goods after Prime Minister Mark Carney abruptly ended on‑the‑air trade talks.
Carney’s announcement came after the U.S. threatened a levy on nearly $20 bn of Canadian imports and quietly lifted that threat only to fall back on it hours before the deadline.
Carney said the U.S. would “call their own words into play” if Canada did not match the tariffs dollar for dollar, citing the “unfair, inequitable” changes to the negotiating line‑ups.
The new duties target a broad range of goods: wine, dairy, cement, clothing, hockey equipment, cars, aluminum, steel, and lumber.
U.S. trade representative Jamieson Greer warned, “We will take action,” and that the U.S. would not tolerate counter‑tariffs.
Ontario Premier Doug Ford voiced full backing for a “tariff for tariff, dollar for dollar” response, echoing provincial and federal calls for a hard‑line stance.
The trade standoff threatens to disrupt supply chains across North America, slice up cost‑bases for U.S. families, and reduce U.S. jobs supporting 13 million jobs in the North American Free Trade Agreement.
A poll by Abacus Data found 36 % of Canadians favouring retaliation, while 30 % desired the government to keep negotiating with Washington.
The conflicting demands have kept the relationship simmering since Trump’s 2017 tariff roll‑out, and the U.S. has long asked Canada to drop alcohol sales restrictions and lower dairy quotas.
Stay tuned for live updates on the fresh trade fallout and market reactions across the border.
Image source: Reuters
