Due to a last-minute lack of agreement, the new 50% tariffs sought by Donald Trump against a number of Canadian products came into effect on Saturday, Ottawa promising a dollar-for-dollar retaliation.
The two neighboring countries, whose relations have markedly deteriorated since the start of Donald Trump’s second term, acknowledged their inability to reach an understanding a few minutes before the ultimatum set by the American president.
They blamed each other for this failure, which has raised fears of a tariff escalation.
“Despite an American offer allowing Canada to benefit from better treatment than any exporter on our market, new demands and the rollbacks on other commitments by Canada have disrupted the fragile balance achieved in recent days,” said Jamieson Greer, spokesperson for the White House Office of the U.S. Trade Representative (USTR).
According to him, the U.S. government had notably proposed lowering sectoral tariffs affecting steel and aluminum, the auto sector, and construction lumber, in exchange for concessions from Canada, which were not detailed.
Canadian Prime Minister Mark Carney denounced Washington’s conditions, which he said were “unjust, uneconomic and call into question the reliability of any agreement.”
“Canada will apply tariffs that are equivalent, dollar-for-dollar, to protect our workers and our businesses,” he stated in a release.
The new punitive American tariffs, in effect since 00:01 (04:01 GMT), apply to a total of $20 billion worth of Canadian imports, including cement and hockey sticks. This represents about 5.5% of Canadian exports to the United States, according to some estimates.
