U.S. Imposes 50% Tariff on $20 Billion of Canadian Goods as Trade Talks Collapse (Comprehensive)

About 5% of Total Imports; Canada Plans to Retaliate
Tariff Front Expands Beyond Steel and Aluminum

The trade negotiations between the United States and Canada have ultimately broken down, with the United States deciding to impose a 50% tariff on Canadian imports worth a total of 20 billion dollars. Although this accounts for roughly 5% of the total value of Canadian imports to the U.S., trade tensions between the two countries are expected to escalate further.

Canadian Prime Minister Mark Carney and U.S. President Donald Trump. Photo by Yonhap News

On the 21st (local time), according to AP and AFP, Jamieson Greer, the United States Trade Representative (USTR), stated on X (formerly known as Twitter) that Canada had declined to agree to the final settlement of the trade agreement that had been under negotiation between the two countries.

The two countries had originally set the tariff deadline for the 19th, then extended it by three days and continued negotiations, but failed to reach an agreement. As a result, starting from midnight on the 22nd, the United States will impose a 50% tariff on select products, including certain dairy products, liquor, hockey equipment, machinery, textiles, cement, and furniture.

The United States cited Section 338 of the Tariff Act of 1930 as the legal basis for these measures. Previously, the Trump Administration had imposed a 50% tariff on Canadian steel and aluminum, and a 25% tariff on automobiles, continuing to target key Canadian industries with its tariff policy.

Representative Jamieson Greer claimed that the United States had offered to significantly lower tariffs on steel and aluminum, but Canada broke previous commitments by presenting new demands.

Canada responded immediately. Prime Minister Mark Carney of Canada issued a statement declaring that Canada would "impose tariffs of equivalent magnitude" in response to the new U.S. tariffs.

If the two countries implement retaliatory tariffs, the risk of renewed trade conflict across North America will increase significantly. The United States and Canada share a border of approximately 8,892 kilometers, with daily trade between the two countries amounting to about 2 billion dollars.

This content was produced with the assistance of AI translation services.