Tariffs hit Canada: 50% on $20B goods

Canada suspended US trade talks and will impose reciprocal 50% tariffs on about $28 billion in Canadian goods after last-minute changes in US terms, according to Prime Minister Mark Carney. Canada will retaliate dollar-for-dollar and return negotiators to Ottawa, saying the US proposals were unfair and uneconomic even though some progress was made. The US had already imposed tariffs on roughly $20 billion of Canadian imports, and Canada matched those measures, escalating tensions and affecting about 5% of Canadian exports. The tariffs took effect just after midnight, marking a significant shift that could complicate broader negotiations for a future free-trade pact and threaten export-driven sectors. Markets responded to the flare-up with signals of increased geopolitical risk and potential moves in safe-haven assets like gold.