U.S. 50 percent Canada tariffs take effect after trade talks break down

A fresh round of U.S. 50 percent tariffs on a wide set of Canadian goods took effect after last-minute trade talks collapsed, NBC News, the BBC, CBC, and NPR reported.

President Donald Trump had threatened the levy on nearly $20 billion of Canadian imports and briefly paused the deadline earlier in the week while negotiators worked. Canadian Prime Minister Mark Carney then suspended talks shortly before the Friday night cutoff. He said last-minute U.S. proposed terms were unfair and uneconomic and ordered negotiators back to Ottawa. Carney said Canada would match U.S. tariffs dollar for dollar.

U.S. Trade Representative Jamieson Greer said Canada declined to finalize a deal under terms agreed earlier in the week. Greer said new Canadian demands and walk-backs upended the balance reached in recent days, even after what he described as an offer of the best treatment of any major exporter to the U.S. market. He also cited Canadian provincial bans on American alcohol and other retaliatory barriers as sticking points.

Reporting said negotiators had discussed cutting U.S. tariffs on Canadian steel and aluminum and on autos, with Canada pressed to restore U.S. alcohol to provincial shelves and ease other barriers including dairy access. Those steps did not close. Greer said the United States had offered significant tariff reductions on steel, aluminum, autos, and lumber.

The new 50 percent duties were imposed under Section 338 of the Tariff Act of 1930, a tool that allows duties of up to 50 percent when a foreign partner is found to discriminate against U.S. commerce. Coverage lists wine, dairy, cement, clothing, hockey equipment, and some building materials among products hit, stacked on earlier U.S. tariffs on Canadian steel, aluminum, autos, and lumber.

Canadian Chamber of Commerce president Candace Laing called the outcome a body blow to North American competitiveness. The U.S. Chamber of Commerce had warned higher tariffs would raise costs for American families and risk jobs tied to North American trade. Ontario Premier Doug Ford backed a tariff-for-tariff response. Shoppers and investors should expect price and supply noise while both governments dig in.