Negotiations for a trade agreement between the US and Canada have failed, leading the US to implement a 50% tariff on Canadian goods worth over $20 billion starting today.
In response to the imposition of these tariffs, Canadian Prime Minister Mark Carney vowed to introduce similar tariffs against the US. Prime Minister Carney noted that progress had been observed in recent weeks toward reaching the best agreement between Canada and the US, but according to Canadians, the set goals were not achieved. Carney also stated that Canada would respond to the new US tariffs in dollar equivalent.
According to news agency AFP, US trade representative Jameson Greer announced on Friday that Canada refused to finalize the trade agreement according to the agreed terms at the beginning of this week. He also mentioned that Canada rejected US proposals to reduce tariffs in sectors such as steel and aluminum.
Canadian Prime Minister Carney explained that the changes made to the conditions proposed by the US at the last minute were unfounded and unfavorable, which called into question the reliability of any agreement. He added that his government would announce additional support for Canadian entrepreneurs and businesses soon.
Canada demands that the US ease tariffs on automobiles, steel, and aluminum, as these measures have put pressure on the country's economy, contributed to job losses, and heightened tensions in previously strong trade relations with the US.
Carney has repeatedly warned Canadians that irreversible changes have occurred in relations with the United States, regardless of the outcome of any bilateral trade agreements. He urged the country to diversify and reduce dependence on the US, which currently accounts for about 70 percent of Canadian exports.
Last year, trade between the two countries reached $880 billion. However, due to the current tariff dispute, a significant decline in imports and exports is possible. Although the deadline for concluding the deal was extended by three days, the agreement was still not reached.