By Spear News Nigeria
Canada has suspended trade negotiations with the United States, Prime Minister Mark Carney announced late Friday, hours before new American tariffs on Canadian goods took effect at midnight.
The decision came after weeks of talks between the two countries failed to produce a deal. Carney said last-minute changes to the U.S. proposal were “unfair, uneconomic” and undermined trust in any potential agreement.
“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” Carney said in a statement.
The suspension clears the way for new 50% duties on Canadian exports to the United States, which went into effect at midnight. The tariffs cover a range of goods including wine, hockey sticks, cement and other building materials.
Carney confirmed that Canada would retaliate immediately.
“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” he said.
The duties are being imposed under Section 338 of the Tariff Act of 1930, a law that has never been used before to impose trade penalties.
The collapse of the talks marks a sharp reversal from earlier this week when U.S. President Donald Trump announced a three-day pause on the tariffs, writing on social media that both sides had reached a deal.
U.S. Trade Representative Jamieson Greer blamed Canada for the failure, saying Ottawa made new demands and reneged on previous commitments.
“Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” Greer said.
He described the breakdown as “a missed opportunity for Canada to partner with the United States.”
The Canadian Chamber of Commerce called the tariffs “a body blow to North American competitiveness” that would raise costs for American families and eliminate jobs and investment in Canada.
Ontario Premier Doug Ford expressed support for Carney’s decision, saying the prime minister had his “full support for a strong response.”
Carney signaled a shift in Canada’s relationship with its southern neighbor, saying, “America has changed, and we will not return to our old relationship.”
“Canada has what the world wants. And we will not allow any nation to determine our future,” he added.
The new tariffs are expected to face legal challenges, while both countries brace for the economic impact of an escalating trade war.
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