US to impose 50% tariffs on Canadian imports worth $20 billion; Carney vows to match tariffs 'dollar for dollar'

The United States is set to impose 50 per cent tariffs on $20 billion worth of Canadian imports after the two long-standing allies failed to reach a deal at the last minute. The new tariffs will come into effect at 12:01 am on Saturday (local time) on hundreds of items that Washington imports from Ottawa, including plywood, liquor, electrical equipment and hockey gear, Bloomberg reported. The two sides were locked in negotiations for weeks and had worked on a draft deal that included reducing tariffs on certain Canadian steel and aluminium to 25 per cent and cutting duties on Canadian autos to 15 per cent. In exchange, Ottawa was to remove retaliatory measures that it implemented last year after the US President launched the trade war. According to reports, the White House had been seeking a series of concessions, including eliminating Canada's counter-tariffs on American vehicles and lifting the ban on the retail sale of US alcoholic beverages in most provinces. However, the two sides couldn't get the deal to the finish line, with US Trade Representative Jamieson Greer stating that the Canadian side declined to finalise a deal. A US official noted that no new talks were scheduled. The failure to reach a deal has once again heightened tensions between the two longtime allies, which recorded nearly $900 billion in trade in goods and services last year. Beyond the tariff dispute, President Donald Trump has repeatedly floated the idea of making Canada a US state, called its prime ministers “governors,” and said the country could not survive without the United States. This is a developing story. More details awaited. Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.