Overview
- The collapse of last‑minute negotiations late Friday led Prime Minister Mark Carney to suspend trade talks and recall Canadian negotiators to Ottawa.
- The U.S. implemented 50% duties at 12:01 a.m. Saturday on roughly $20–$28 billion of Canadian goods, covering items from hockey sticks and wine to lumber and building materials.
- Carney said Canada will retaliate dollar for dollar and announced plans to introduce measures to support affected workers and businesses.
- Key sticking points that helped scuttle a deal included autos, steel and aluminum levies, dairy access and provincial bans on U.S. alcohol that some premiers resisted restoring to store shelves.
- Lawyers say the Section 338 move is untested and likely to prompt court challenges, which could prolong uncertainty for supply chains, investment decisions and the broader USMCA trade relationship.