Canada-U.S. Talks Collapse; Tariffs Imposed

Negotiations between the United States and Canada collapsed late Friday, triggering 50% tariffs on about $20 billion of Canadian goods. Canada vowed to retaliate dollar-for-dollar, targeting American products in steel, dairy, electronics, and pulp and paper. Ottawa says Washington’s last-minute terms were unfair and uneconomic. Washington reportedly pressed for significant concessions while Canada says the changes jeopardize the deal’s reliability, with both sides blaming the other. Analysts warn the move could raise prices for consumers and disrupt key industries in both countries, potentially derailing any near-term path to a broader free-trade pact. Observers say the collapse signals a shift in the Canada-U.S. relationship, with Canada emphasizing resilience and diversification in response to economic coercion.