OTTAWA: Canadian Prime Minister Mark Carney has announced the suspension of trade talks with the United States after Washington moved to impose a 50% tariff on certain Canadian imports.
The new tariffs are expected to affect Canadian goods worth about $20 billion, according to international media reports.
US Moves Ahead With New Tariffs
US Customs authorities have issued guidance on the additional duties covering certain products imported from Canada.
US Trade Representative Jamieson Greer said Canada had refused to finalize a trade agreement with Washington.
He also accused Ottawa of continuing retaliatory measures against the United States.
More Read
Greer said Washington had offered Canada more favourable access to the US market.
Canada Suspends Negotiations
Carney said progress in the negotiations had not been sufficient to achieve the goals set by the Canadian government.
He therefore announced that Canada would suspend its trade negotiations with Washington.
The move marks another setback in economic relations between the two neighbouring countries.
Canada Threatens Matching Tariffs
Carney also warned that Canada would respond if the United States proceeds with the 50% tariff.
He said Canada would impose tariffs of an equivalent value on US goods.
The threat raises the possibility of a wider trade dispute between the two countries.
Tariffs Could Increase Trade Tensions
The latest measures could put further pressure on businesses on both sides of the US-Canada border.
Canada and the United States have closely integrated economies, with major trade flows involving manufacturing, energy, agriculture and other sectors.
More Read
A prolonged tariff dispute could therefore affect companies, consumers and cross-border trade.
The two governments now face growing pressure to resolve their differences and prevent the dispute from escalating further.
