US-Canada Trade Talks Collapse

News Desk

Washington: Trade tensions between the United States and Canada have intensified after negotiations between the two countries failed to produce an agreement, raising the prospect of renewed tariff measures and a further deterioration in bilateral trade relations.

Canadian Prime Minister said on X that the two sides had been unable to reach a deal and announced that Canada would respond to US tariffs on a dollar-for-dollar basis. Canadian negotiators were also instructed to return home from the United States.

The breakdown marks a renewed escalation in a trade dispute that had appeared to be easing after Washington temporarily suspended some tariffs on Canadian imports.

The US Trade Representative, however, blamed Canada for the collapse of the negotiations, saying Ottawa had introduced new demands and moved away from commitments made during earlier discussions.

US media reported that Washington has imposed a 50% tariff on around $20 billion worth of Canadian goods, adding further pressure on businesses and consumers on both sides of the border.

President Donald Trump had postponed the tariffs on Canada three days earlier, raising hopes that the two countries could resolve their differences through negotiations.

The latest breakdown has instead revived concerns of a prolonged trade confrontation between two closely integrated economies, with Canada now signaling that it is prepared to match US tariff measures.