Key facts
- A trade agreement between the U.S. and Canada collapsed before a midnight deadline.
- The U.S. planned to impose 50% tariffs on approximately $20 billion of Canadian goods.
- Canada stated it would match the U.S. tariffs dollar for dollar.
- President Donald Trump announced a three-day postponement of the tariffs.
- Trump later stated a deal had been reached with Canadian Prime Minister Mark Carney.
- The terms of the finalized deal have not yet been disclosed.
A trade agreement between the United States and Canada collapsed just before midnight on Friday, leading to the planned imposition of 50% tariffs on approximately $20 billion worth of Canadian goods. U.S. Trade Representative Jamieson Greer stated that Canada's "new demands and walkbacks of other commitments" upended the agreement.
In response, Canada announced it would match the U.S. tariffs dollar for dollar to protect its workers and businesses. Prime Minister Mark Carney confirmed that trade negotiations were suspended, citing an inability to reach an agreement that met Canada's objectives.
However, President Donald Trump later announced a three-day postponement of the tariffs, citing progress in discussions with Prime Minister Carney. Trump subsequently declared that a deal had been reached, though its specifics remain to be finalized. The postponed tariffs would have impacted products including dairy, alcohol, and furniture. The administration had planned to utilize a 1930s law for the tariffs, which was expected to face legal challenges.