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US and Canada trade talks collapse as US raises tariffs to 50%
The US imposed 50% tariffs on $20bn of Canadian goods after talks ended just before a Saturday 12:00am ET deadline, prompting Canada to vow dollar-for-dollar retaliation.
The Guardian Economics reports that trade negotiations between the United States and Canada have collapsed, deepening a trade war after weeks of talks ended shortly before a Saturday deadline.
According to the report, the US imposed 50% tariffs on $20bn worth of Canadian goods right before the 12:00am ET cut off, with Canada arguing that last minute US demands would undermine its sovereignty.
The outlet says Canadian officials pointed to US concerns including Canada’s bans on the sale of US alcohol across eight of its 10 provinces and all three territories. It also notes that Canada’s removal of US spirits, wine and beer from shelves followed Trump’s first round of tariffs applied earlier in 2025.
Mark Carney, according to the report, rejected the deal, while Canada’s prime minister said the country would match US tariffs dollar for dollar, as observers described the breakdown as a sign that meaningful negotiation with the current US administration may be difficult.