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Canada vows to intensify trade talks after US imposes 50% tariffs

The Canadian dollar softened modestly after the announcement, extending a period of currency weakness tied to the broader tariff standoff with Washington.

Reported · Written up by our desk · Major Pairs

The US has imposed a 50% tariff on a wide range of goods imported from Canada, citing what it called unequal treatment of US cars, dairy and alcohol, the BBC reports. The duties are set to take effect in 30 days and cover all covered goods regardless of whether they fall under the USMCA free trade agreement.

The BBC says the targeted items include everyday consumer products like wine and hockey sticks as well as industrial goods such as cement, while some key exports are spared, including energy, potash, critical minerals and fish. Prime Minister Mark Carney said Canada is ready to intensify trade talks with the US in the coming weeks.

According to the White House statement cited by the BBC, the move is a major escalation in trade tensions and follows a series of unilateral US trade actions that the BBC reports began with tariffs imposed in violation of the Canada-United States-Mexico Agreement. The BBC also notes the two countries already have active tariff barriers, including tariffs on Canadian steel, aluminium and copper, as well as duties tied to softwood lumber and non-US parts in cars.

Forexlive reports the Canadian dollar softened modestly on the news, extending a stretch of currency weakness linked to the broader tariff standoff with Washington, while Carney signaled continued willingness to negotiate rather than immediate retaliation. Markets will be watching for further developments as the tariff timeline approaches.

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