No Deal: 50% Canadian Tariffs Implemented After ‘Unfair' Negotiations

Tariffs on an estimated $28 billion of Canadian goods went into effect at midnight Saturday, hours after Canadian Prime Minister Mark Carney said he would suspend trade negotiations with the U.S. following "unfair" and "uneconomic" changes to terms that were proposed at the "last minute."

Beer, cars, dairy and a long list of other Canadian imports are now subject to a 50% tariff in addition to existing tariffs on Canadian steel, aluminum and lumber.

The two countries have been negotiating the tariffs, first announced in July, for more than 30 days until Carney on Friday night said he would be suspending negotiations.

He said the tariffs and how the negotiations unfolded underscore his belief "America has changed, and that we will not return to our old relationships.”

U.S. Trade Representative Jamieson Greer said the suspension of negotiations was a "missed opportunity for Canada to partner with the United States.”

The tariffs apply to about 5% of the $380 billion in Canadian goods that are imported to the U.S. each year and while economists have said the tariffs themselves likely won't overly impact American consumers, they've hurt the " extremely important " relationship between the two countries.

"(Canadian negotiators) worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," Carney said . "However, last-minute changes in the U.S. proposed terms were unfair, uneconomic and called into question the reliability of any deal.”

Carney said Canada will match the U.S. tariffs dollar-for-dollar to protect domestic businesses and workers.

If that comes to be, the price of American exports will skyrocket in Canada and buyers will likely switch to domestic alternatives or import from other countries, cutting into revenues for American farmers and manufacturers.

Trade tensions with Canada have been escalating since 2025, when the U.S. implemented broad national tariffs that set off negotiations over regional trade and exemptions.

In July, the U.S. announced targeted 50% tariffs on a wide swath of Canadian goods with a 30-day window for negotiations.

A three-day extension moved the deadline Aug. 21 but negotiations broke down late Friday.

The tariffs apply to products including heavy machinery, plastic polymers, home goods, light fixtures, paper products, specialized medical supplies and other imports.

Other Major Canadian exports, like crude oil, natural gas and primary steel/aluminum were explicitly excluded from the new tariffs.

Trump on Friday also said the government will allow up to 300,000 metric tons of ground beef to be imported without tariffs amid concerns over food affordability.

He said companies importing the beef, which he did not name, promised to sell it at 25% below current market prices.

Beef prices have soared this year due as the nation’s cattle herd hits a 70-year low.