In a development that will affect consumers and businesses across the United States, Canadian Prime Minister Mark Carney announced Friday night that Canada is suspending trade negotiations with the United States. Carney said the progress made in the talks was insufficient to meet Canadian objectives, and he directed Canada’s negotiators to return to Ottawa.
New 50% tariffs on Canadian imports
Under authority granted by Section 338 of the Tariff Act of 1930, the United States will impose duties of up to 50% on a broad range of Canadian products beginning at midnight. The U.S. Trade Representative estimates the measures will affect about $20 billion worth of Canadian imports, including hockey sticks, certain building materials, liquors and specific clothing items.
Canada vows matching retaliation
Carney said Canada will “match those tariffs dollar for dollar” to protect Canadian workers and businesses. The reciprocal tariffs are expected to raise costs for U.S. consumers and could strain supply chains that rely on cross‑border trade.
Background to the breakdown
Negotiations had been ongoing for nearly two weeks, with both sides expressing optimism until the final hours. On Thursday, Canada’s minister for U.S. trade relations met with U.S. Trade Representative Jamieson Greer for several hours, and both parties said they were close to a deal. However, talks on Friday extended into the night without reaching a compromise.
Domestic pressure also weighed on the Canadian government. Manitoba Premier Wab Kinew urged the federal government to “fight” President Trump, while Quebec Premier Christine Fréchette said she was still analyzing Carney’s request that provincial bans on American alcohol sales be lifted. Ontario Premier Doug Ford made no public comment.
Potential legal challenges
The Section 338 tariffs have never been used before, and legal experts expect Canada to challenge the duties in court. Canadian officials had been seeking to have the Section 338 authority removed entirely and to lower existing tariffs on industrial products such as steel and aluminum, which were imposed under Section 232 of the Trade Act.
Economic impact and broader context
The U.S. Chamber of Commerce warned that higher tariffs could damage both economies, increase costs for American families, and threaten the 13 million U.S. jobs that depend on the United States‑Mexico‑Canada Agreement (USMCA). The new duties are described by U.S. officials as retaliation for earlier Canadian measures against U.S. commerce, a pattern previously seen only with China.
Last year, President Trump responded to Chinese retaliation by raising tariffs into the triple digits, a dispute that was later de‑escalated through negotiations between Treasury Secretary Scott Bessent and Chinese officials.
Both governments have not provided further comment on the next steps, leaving businesses and consumers to brace for the immediate impact of the new tariffs.
Original reporting: NBC6 Miami — read the source article.
