Trade talks between Canada and the United States have broken down, prompting Canadian Prime Minister Mark Carney to announce retaliatory tariffs matching American levies dollar-for-dollar. The collapse came minutes before a Friday deadline after disagreements over revised US proposals.

Negotiations between Canada and the United States have ended in stalemate, with new American tariffs on Canadian goods taking effect after midnight Saturday. Canadian Prime Minister Mark Carney announced the suspension of talks shortly before the deadline, citing last-minute changes to US terms that he described as unfair and economically unsound. In response, Carney declared Canada would impose reciprocal tariffs on US goods equivalent to the American levies.

The fresh 50% US tariffs will affect numerous Canadian products including wine, dairy, cement, clothing, and hockey equipment, supplementing existing duties on steel, aluminium, automobiles, and lumber. According to US trade representative Jamieson Greer, Canada rejected finalised deal terms, stating that new demands and reversed commitments disrupted the previously agreed framework. Negotiators had reportedly discussed reducing US tariffs on Canadian steel and aluminium from 50% to 25%, and automotive tariffs from 25% to 15%.

The breakdown represents a sharp reversal from earlier in the week, when both nations signalled optimism about reaching an agreement. The US had requested several concessions from Canada, including removal of retaliatory tariffs on American automobiles, adjusted dairy quotas favouring US cheese, and lifting provincial bans on US alcohol sales implemented last year. Carney had sought to address the alcohol ban through provincial coordination.

Business groups on both sides expressed concern about the escalation. The US Chamber of Commerce warned that higher tariffs would damage both economies and threaten jobs dependent on the trilateral trade agreement. However, Canadian public opinion appeared divided, with polling suggesting 36% would support retaliation while 30% preferred continued negotiation. Greer indicated the US would respond to any Canadian counter-tariffs, stating officials would "take action."