Canada has pulled out of a trade deal with the United States after last-minute talks failed. The Trump administration is preparing to impose new tariffs of up to 50 percent on Canadian goods. The tariffs would apply to about $20 billion in Canadian goods, or about 5 percent of Canada’s total exports to the United States.
US Trade Representative Jamieson Greer said Canada has refused to finalize the trade deal under the terms agreed to earlier this week.
But Canadian Prime Minister Mark Carney said last-minute changes to the terms proposed by the United States were unfair and unprofitable and called into question the reliability of any agreement.
Carney said his government will soon announce new measures to help Canadian workers and businesses.
The United States and Canada trade about $880 billion in goods and services annually. The border between the two longtime allies is about 5,525 miles long, and a large number of people and goods cross the border every day.
Trump’s Canada policy is seen as a major departure from the two countries’ traditional friendly relations.
The new tariffs could put pressure on Canadian businesses and labor markets, as about 72 percent of Canada’s total exports go to the U.S. market. On the other hand, the burden of tariffs on U.S. importers could increase product prices—a political risk for the Trump administration ahead of the November midterm elections.
