The US-Canada tariff dispute escalated on Saturday as Washington imposed 50% duties on about $20 billion in Canadian goods after the two countries failed to reach a trade agreement.
The tariffs took effect just after midnight local time (0400 GMT) and cover goods that do not qualify for preferential treatment under the US-Mexico-Canada Agreement.
Canadian Prime Minister Mark Carney said Canada had suspended trade negotiations and would retaliate “dollar for dollar” against the new duties. He blamed last-minute changes to the US terms for the collapse of the talks.
US Trade Representative Jamieson Greer offered a different account, saying Canada had declined to finalise terms agreed earlier in the week.
A senior Trump administration official said Canada had sought additional concessions on steel, aluminium, automobiles and softwood lumber. No further negotiations were scheduled as the new tariffs took effect.
The affected goods account for just over 5% of Canadian exports to the United States, according to the supplied figures.
Read: Canada Tariff Pause Delays 50% Levy For Three Days
The duties follow three days of negotiations in Washington involving Greer and Canadian Minister responsible for US trade Dominic LeBlanc. Existing US tariffs already affect Canadian steel, lumber and automobiles.
The dispute also adds pressure to future negotiations over renewal of the US-Mexico-Canada Agreement, which governs much of the trade among the three countries.
