U.S.-Canada Trade Talks Collapse; 50% Trump Tariffs Take Effect on $20B of Goods, Carney Vows Dollar-for-Dollar Retaliation
- Negotiations broke down late Friday after three days of talks in Washington;50% tariffs under Section 338 of the Tariff Act of 1930 took effect at 12:01 a.m. ET Saturday on roughly $20B of Canadian goods including plywood, liquor, electronics, and dairy — covering about 5% of Canadian exports to the U.S. (Al Jazeera, Bloomberg).
- Prime Minister Mark Carney suspended talks and recalled negotiators to Ottawa, saying last-minute U.S. changes were 'uneconomic' and 'unfair'; Canada will impose matching tariffs starting Sept. 8 concentrated on steel, dairy, appliances, ag equipment, pulp/paper, and electronics.
- USTR Jamieson Greer blamed Canada, saying Ottawa 'declined to finalize the trade deal under the terms agreed earlier this week'; Greer told Fox News 'we don't have new talks planned with the Canadians' and warned of U.S. response to Canadian retaliation (NBC News, NYT).