US hits Canadian goods with 50% tariffs

According to The Express Tribune, the United States imposed 50% tariffs on some Canadian goods on Saturday, after the two countries could not agree on a trade pact following days of talks. Each government accused the other of undermining the negotiations. The duties took effect just after midnight GMT and cover roughly $20 billion of Canadian products, such as wooden ice hockey sticks.

The goods covered amount to just over 5% of Canada's exports to the US, so the immediate economic effect is limited, but the measures have raised tensions between President Donald Trump and Prime Minister Mark Carney. Trade experts warned that already fragile sectors could suffer serious harm, including job losses and business closures. The tariffs do not get preferential treatment under the regional trade agreement linking the US, Mexico and Canada.

Carney said he had suspended negotiations and promised a matching response in dollar terms. US Trade Representative Jamieson Greer accused Ottawa of turning down a deal that had been agreed earlier in the week, and a senior official said no further talks were planned. Before the tariffs were announced, both sides had neared an arrangement that could have reduced duties on steel, aluminium and autos.