Washington: The United States has announced a significant escalation in trade tensions with Canada by imposing a 50 percent tariff on a selection of Canadian goods valued at approximately $20 billion. This decision follows the breakdown of trade negotiations between the two countries, which failed to produce an agreement after several days of discussions. The newly imposed tariffs notably affect Canadian timber exports to the U.S., which constitute over 5 percent of Canada's total exports to its southern neighbor.
According to Thai News Agency, both nations have placed the blame on each other for the unsuccessful negotiations. In a decisive response, Canadian Prime Minister Mark Carney has suspended trade talks with the United States and recalled the negotiating team to Ottawa. He criticized the last-minute U.S. proposal as unfair, calling into question its credibility, and stated that Canada is ready to respond with measures of equivalent value. Polls indicate that a majority of Canadians are against yielding to the demands set forth by the U.S. administration.
In contrast, U.S. Trade Representative Jamieson Greer expressed disappointment at a press conference held at the White House, describing the situation as a missed cooperative opportunity for Canada with one of the G7's fastest-growing economies. Greer noted that the U.S. proposal would have provided Canada with superior tariff benefits compared to other exporting nations. However, he asserted that negotiations collapsed after Canada sought additional concessions on steel, aluminum, automobiles, and processed wood. As it stands, further discussions have not been scheduled.