U.S. imposes 50% tariffs on $28 billion in Canadian goods; Carney vows dollar-for-dollar retaliation

The United States imposed 50 per cent tariffs on Canadian goods just after midnight Saturday, after the two countries failed to reach a trade agreement despite coming close in final days.

Prime Minister Mark Carney said he suspended negotiations and directed Canadian negotiators to return to Ottawa. He announced Canada will retaliate with matching dollar-for-dollar tariffs on American goods, though the specific products targeted have not been disclosed.

U.S. Trade Representative Jamieson Greer said Canada declined to finalize a deal under terms the administration had offered, claiming last-minute Canadian demands and reversals "upended the careful balance reached in the past days."

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said the tariff impact will be severe. "For a small Canadian exporter operating on tight margins, this isn't an abstract trade dispute," she said. "It means looking at your orders, your payroll and your employees and asking what you can still afford." Laing added that Americans will see costs rise while Canadians will see customers, investment and small businesses disappear.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, said small exporters face the 50 per cent levy. "Many CFIB members have said this will end their U.S. sales and some have reported this will kill their businesses," he said.

Union leader Lana Payne said Canadian negotiators made "the right decision by walking away." The government has committed support for affected businesses and workers, though no details on the form or timing of that aid have been announced.