U.S. imposes 50% tariffs on $20 billion of Canadian goods as trade talks collapse

The United States announced on Saturday that it will levy 50% tariffs on roughly $20 billion of Canadian products after last-minute trade talks broke down. U.S. Trade Representative Katherine Tai said Canada declined to finalize a deal that had been outlined earlier in the week and that no further negotiations are planned.

"We're moving forward with measures that respond to Canadian retaliation," Tai told reporters, adding that the steps are intended to protect American workers and supply chains.

Justin Trudeau said Canada will introduce matching tariffs "dollar for dollar" on a range of items, including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with the measures taking effect the Tuesday after Labor Day.

"They asked too much and offered too little," Trudeau said, accusing the United States of making unreasonable final demands.

The new U.S. tariffs are expected to affect about 5% of the $880 billion in annual bilateral trade, covering goods from hockey sticks to medical supplies. Canada had indicated willingness to drop its own retaliatory duties on steel, aluminum and autos if the United States reduced its tariffs, but said the U.S. proposals were not acceptable.

Both governments have previously signaled progress toward a compromise, but the latest round of talks ended without an agreement, prompting the Trump administration to extend the original deadline for the tariffs by three days before implementing the measures.