The trade agreement between the United States and Canada failed to be concluded at the last minute, which prevented the mitigation of the impact of American tariffs on Canadian products. Despite negotiations running late into Friday evening, the parties could not reach a final agreement.
Canadian Prime Minister Mark Carney stated that the US made changes to the deal's terms at the very last moment, which he deemed unfair and economically disadvantageous. Consequently, he decided to suspend the dialogue and returned the Canadian delegation to Ottawa.
In turn, in Washington, US trade representative Jameson Greer presented a different picture, asserting that Canada refused to finalize the agreement under the previously agreed conditions because it put forward new demands and backed away from some commitments it had made.
The Canadian delegation, led by Trade Minister Dominic Leblanc, spent several hours in Greer's office near the White House. Previously, the parties were close to reaching a preliminary agreement, which, according to CBC, involved reducing certain industry tariffs in exchange for concessions from Canada, including the repeal of regional bans on the sale of American alcohol.
The main points of contention were the terms of steel trade, as well as situations in the automotive and forestry sectors. One factor contributing to the collapse could have been the participation of US Trade Minister Howard Latnik, who insisted on stricter conditions for Canada.
Following the failure of the negotiations, the US imposed new 50% duties on hundreds of types of Canadian goods, the total value of which exceeds $28 billion. Carney warned that Canada would respond to these measures on a 'dollar-for-dollar' basis. It is worth noting that back in July, the US announced the introduction of additional 50% duties on a number of Canadian goods, which were set to take effect on August 19. This decision was made in response to restrictions imposed by Canadian provinces against American alcoholic products, which led to an 81% decrease in alcohol imports from the US to Canada.