US-Canada Trade Talks Collapse Amid Tariff Dispute

Trade talks between the US and Canada collapsed on Friday night, leading to the imposition of 50% tariffs by the US on Canadian imports worth $28 billion. In response, Canadian Prime Minister Mark Carney announced that Canada would retaliate with matching tariffs to protect its workers and businesses.

Citing 'unfair and uneconomic' demands from the US, Carney said that Canada had been working to diversify its trade partnerships and strengthen its domestic economy. He noted that exports to non-US markets have increased significantly, with a 11.1% rise in 2025 alone.

The US Trade Representative accused Canada of walking back commitments and adding new demands, calling it a 'missed opportunity' for Canada to partner with the US. The US had offered sector-specific relief and a historic economic and national security partnership, but these were rejected by Canada.