After the United States imposed a 50% tariff on $20 billion worth of Canadian products, Canada signaled retaliatory tariffs, and the United States said it would take additional steps in response. The trade dispute between the United States and Canada is intensifying as both sides exchange tariffs immediately after talks collapsed.
According to Reuters and others on the 22nd local time, Jamieson Greer, head of the Office of the United States Trade Representative (USTR), said in an interview with Fox News, "We are pursuing measures to respond to Canada's retaliation," and "Our focus is on protecting American workers and America's supply chains."
The United States and Canada recently came close to a trade deal, but last-minute talks fell apart. Canada halted negotiations on the night of the 21st, saying the changes the United States proposed at the final stage were unfair, and at midnight on the 22nd the United States imposed a 50% tariff on about $20 billion worth of Canadian products.
Canada also hit back. Prime Minister Mark Carney said that day that Canada would impose retaliatory tariffs on U.S. steel, dairy products, home appliances, agricultural machinery and pulp. The retaliatory tariffs will take effect starting on the 8th of next month, and specific tariff rates by item will be announced later.
Carney said, "We cannot accept the proposal put forward by the United States, nor will we give in to what they demanded." Regarding the last-minute conditions the United States presented, he said they were "unfair and uneconomic," adding, "The United States asked for too much and offered too little."
The United States is placing the blame for the breakdown on Canada. Greer argued that Canada had already been receiving more favorable treatment than other exporting countries, and that the United States proposed lowering tariffs on steel, automobiles and lumber, but Canada did not accept it.
It is unclear when talks will resume. Greer said there is "no newly scheduled negotiation" with Canada. With Canada retaliating against the U.S. 50% tariff and the United States signaling further action, the tariff dispute between the two countries is likely to continue for the time being.