US hits Canadian goods with 50pc tariffs after trade talks fail

The United States began charging 50 per cent duties on about $20 billion of Canadian goods shortly after midnight GMT on Saturday, after the two countries failed to finalise a trade agreement. Each side blamed the other for the collapse of three days of talks held in Washington. Dawn reported that the goods include items such as wooden hockey sticks, which see little use today.

Prime Minister Mark Carney said he had suspended negotiations and that Canada would retaliate with matching duties. He called the last-minute changes to the American terms unfair and uneconomic, arguing they cast doubt on any future deal. US Trade Representative Jamieson Greer described the outcome as a missed opportunity for Canada, while a senior administration official said Ottawa had asked for further concessions on steel, aluminium, autos and softwood lumber.

The duties cover just over 5 per cent of Canada's exports to the US, but trade experts quoted in the report warned that already fragile sectors could suffer serious harm and job losses. The move adds to existing US levies on steel, lumber and autos, and no further talks are currently scheduled. The episode also shows how quickly disagreements between major partners can change tariff conditions.