Overview
- Talks between U.S. and Canadian negotiators fell apart late Friday night, and 50% U.S. tariffs on roughly $20 billion of Canadian goods took effect at 12:01 a.m. EDT Saturday.
- President Trump authorized the duties under Section 338 of the Tariff Act of 1930, a presidential authority that sources say has not been deployed before and allows up to 50% duties when the U.S. alleges discrimination.
- Prime Minister Mark Carney suspended negotiations, recalled Canadian negotiators to Ottawa, and pledged to retaliate dollar for dollar while promising support for affected workers and businesses.
- The duties target consumer and industrial items such as wine and other alcohol, dairy, cement, clothing and hockey equipment, raising the risk of immediate price increases and cross‑border supply disruptions.
- Both capitals publicly blamed the other for last‑minute changes that sank the deal, provinces’ bans on U.S. alcohol and procurement limits complicated Ottawa’s bargaining room, and business groups warned the tariffs will hurt jobs and trade while court challenges are expected.