The United States (US) has imposed 50 percent tariffs on $28 billion worth of Canadian products.

Mark Carney, Canadian prime minister, announced the development in a statement on Saturday.

The prime minister said his government has suspended trade negotiations with the US after failing to reach an agreement that meets Canada’s objectives.

Carney said recent talks had made progress towards improving Canada’s position as having the “best deal in the world with the U.S.” but the progress was insufficient.

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” he said.

The prime minister said the negotiating team had worked “in good faith” to defend the interests of Canadians, but last-minute changes to the US proposal were unacceptable.

“However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney said.

He said the US would impose “a 50 percent tariff on about $28 billion worth of Canadian goods at midnight,” adding that Canada would retaliate.

“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Carney said.

He said the Canadian government would introduce additional measures to support workers and businesses in the coming days.

The prime minister added that the measures would build on the nearly $25 billion in support provided over the past 18 months.

Carney said the measures were part of Canada’s broader economic strategy of strengthening the domestic economy and diversifying international partnerships.

“That strategy is working. We are advancing nearly $500 billion in major infrastructure projects,” he said.

The prime minister added that Canada was also working to open new export markets for local businesses.

In a call with reporters late Friday, Jamieson Greer, US trade representative, said Canada had declined to finalise the trade deal under the terms that had been agreed to earlier this week.

“Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,” he said.

“This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7.”

However, Greer said the US offer was “forward-looking” and included “a historic economic and national security partnership”.

Discussions between both countries had been heading towards a positive conclusion before the turnaround.

Dominic LeBlanc, the Canadian minister responsible for trade with the US, on August 20, said both countries are “very close” to agreeing a trade deal that could help reduce months of tariffs and counter duties but more work remains to be done.

On March 3, 2025, Trump had imposed tariffs against Canada and Mexico after a deal to pause the taxes expired.

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