U.S. Tariffs on Canadian Imports Take Effect; PM Carney Warns of Dollar-for-Dollar Hit

U.S. tariffs on Canadian imports went into effect early Saturday morning after Prime Minister Mark Carney suspended trade negotiations just minutes before the midnight deadline.

​"I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa," Prime Minister Mark Carney said. "Last-minute changes in the U.S.-proposed terms were unfair, uneconomic, and called into question the reliability of any deal. Canada will match those tariffs dollar for dollar to protect our workers and businesses."

​In a statement released Friday night, U.S. Trade Representative Jamieson Greer stated that Canada refused to finalize the agreement, adding that the move "upended" the balance achieved during prior negotiations. Greer noted that Canada declined the terms despite the U.S. offering "better treatment" and "significant tariff reductions" on steel, aluminum, autos, and lumber in exchange for key concessions.

Meanwhile, Canadian Premiers have supported the Prime Minister's decision.

​British Columbia Premier David Eby, who has been pushing for relief on softwood lumber duties, also responded sharply to the breakdown in talks, warning that Canada's goodwill should not be tested.

​"Politeness should never be mistaken for weakness," Eby said. "We didn’t ask for this, but we’ll keep fighting for as long as it takes."