OTTAWA: Canada has suspended trade negotiations with the United States after the two sides failed to reach an agreement on new tariffs.
Canadian Prime Minister Mark Carney said the talks had failed to deliver progress on Canada’s interests. He also said Washington had imposed a 50% tariff on certain Canadian imports.
As a result, Carney said Canada would retaliate “dollar for dollar” against the new U.S. tariffs. He also directed Canadian negotiators to return to Ottawa.
Meanwhile, the United States said the 50% tariffs on some Canadian imports had taken effect. Washington said it had offered Canada significant tariff reductions, but Ottawa sought additional concessions and declined to finalise a trade agreement.
The U.S. administration also accused Canada of maintaining retaliatory measures against American products.
However, Canadian officials said last-minute changes to Washington’s proposed terms were unfair and uneconomic. They also questioned the reliability of a potential deal.
The breakdown came after several days of intensive negotiations between the two countries.
Earlier, the two sides had appeared close to an agreement that could have reduced tariffs on key sectors, including steel, aluminum and automobiles. The talks also covered restrictions on U.S. alcohol sales in Canada and other bilateral trade disputes.
However, the negotiations ultimately failed to produce a final agreement.
No new round of talks has been scheduled, according to U.S. officials.
The latest development could further strain economic ties between the two longtime allies. Moreover, businesses on both sides are concerned about the potential impact of another tariff escalation.
The dispute could also complicate broader efforts to renegotiate the United States-Mexico-Canada Agreement (USMCA).
Consequently, the latest breakdown has raised fresh questions about the future of North America’s trade framework as tensions between Washington and Ottawa continue to grow.
