{"id":7154,"date":"2026-08-22T10:07:06","date_gmt":"2026-08-22T10:07:06","guid":{"rendered":"https:\/\/metrotransitreview.com\/?p=7154"},"modified":"2026-08-22T10:07:06","modified_gmt":"2026-08-22T10:07:06","slug":"trumps-50-tariffs-on-20b-in-canadian-goods-take-effect-after-last-minute-talks-collapsed","status":"publish","type":"post","link":"https:\/\/metrotransitreview.com\/?p=7154","title":{"rendered":"Trump\u2019s 50% tariffs on $20B in Canadian goods take effect after last-minute talks collapsed"},"content":{"rendered":"
\n

A hefty new tariff on a wide range of products from Canada took effect early Saturday after last-minute negotiations to avert the duties collapsed.<\/p>\n

Read more Trump to the rescue for California drivers \u2014 despite Gavin Newsom<\/a><\/p>\n

\u201cTonight, Canada declined to finalize the trade deal under the terms agreed earlier this week, despite the US offer to Canada to receive the best treatment of any major exporter to our market,\u201d US Trade Representative Jamieson Greer told reporters. <\/p>\n

\u201cNew demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,\u201d he added.<\/p>\n

The 50% tariff will apply to some $20 billion worth of Canadian products, including wine, hockey sticks, and cement.\u00a0<\/p>\n

Canadian Prime Minister Mark Carney vowed swift retaliation after negotiations failed.\u00a0<\/p>\n

\u201cCanada will match those tariffs dollar for dollar to protect our workers and businesses,\u201d he said in a statement.\u00a0<\/p>\n

\u201cIn the coming days, the government will introduce additional measures to support Canadian workers and businesses, building on the nearly $25 billion in support provided over the past 18 months,\u201d Carney added.\u00a0<\/p>\n

President Trump had originally set a 12:01 a.m. Wednesday deadline for the two sides to reach terms to stave off the tariff but pushed it back to Saturday amid positive, eleventh-hour negotiations.<\/p>\n

The new tax aims to remedy Canada\u2019s \u201csubstantial retaliation\u201d and \u201cdiscrimination\u201d against American products and businesses, according to Trump administration officials.\u00a0<\/p>\n

There will be exemptions for energy and essential goods like fish and critical minerals.\u00a0<\/p>\n

\u201cWe have recognised from the beginning that America has changed, and that we will not return to our old relationship,\u201d Carney\u2019 statement continued. \u201cOur government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.\u201d<\/p>\n

The prime minister blamed \u201clast-minute changes in the US proposed terms\u201d that he described as \u201cunfair, uneconomic, and called into question the reliability of any deal\u201d for the breakdown in talks.\u00a0<\/p>\n

In the hours leading up to the implementation deadline, Trump appeared optimistic that a deal could be finalized with Canada, touting his \u201cgood relationship\u201d with Carney. <\/p>\n

\u201cThe deal with Canada is moving along and we should be able to have a deal,\u201d Trump told reporters at Joint Base Andrews, before jetting off to a rally in South Carolina. <\/p>\n

After teasing that his administration is \u201cstarting on a new deal with Mexico\u201d at the same time it negotiates with Canada, Trump declared: \u201cI only make good deals. Much better deal for the United States, both with Canada and Mexico.\u201d<\/p>\n

The tariff was unveiled last month, shortly after Trump and Carney were spotted chatting during the World Cup final in New Jersey.\u00a0<\/p>\n

The two leaders spoke by phone Monday afternoon and discussed a potential trade deal.\u00a0<\/p>\n

\u2033We are negotiating,\u201d Carney said of talks with Trump, according to the Associated Press. \u201cThe negotiations are very intense and delicate. This is not the time to talk about negotiations in public.\u201d<\/p>\n

Read more Trump warns SC voters they\u2019ll \u2018lose everything\u2019 if Darline Graham doesn\u2019t win Senate race: \u2018Pretend I\u2019m on the ballot\u2019<\/a><\/p>\n

The Trump administration was reportedly pushing for Canada to end retaliatory measures it took against Trump\u2019s tariffs last year, including bans on US liquor and duties on US automobiles.\u00a0<\/p>\n

When he announced the implementation delay on Wednesday, Trump also teased that an agreement to resurrect the dormant Keystone XL pipeline project may also be part of a final deal.<\/p>\n

\u201cThe great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!\u201d the president wrote on Truth Social.<\/p>\n

Meanwhile, Canada has pressed the US to lower tariffs on automobiles and other goods, according to Politico.<\/p>\n

Ottawa wants the US tariff on Canadian-built vehicles cut to 15% from 25% and the levy on Canadian steel and \u2060aluminum halved to 25%, Reuters reported.<\/p>\n

\u201cWe have more work to do. We are going to continue working up until the last minute. Our job is not finished,\u201d Canada\u2019s Minister of Internal Trade Dominic LeBlanc said Friday as he emerged from Greer\u2019s office, just four hours before the deadline.<\/p>\n

LeBlanc\u2019s office confided \u200bwith Carney\u2019s US economic advisory team earlier Friday that talks were \u201ccomplex and consequential,\u201d in an email obtained by Reuters. <\/p>\n

\u201cI want to \u200bbe direct with you about where we stand. This is an intense moment. The stakes are significant\u2026 That pressure is being felt by Canadians across the country, and those at the table \u200care acutely \u2060aware of it,\u201d the email read.<\/p>\n

Canada is the second-largest US trade partner. Nearly 72% of Canada\u2019s goods exports last year went to the US.<\/p>\n

However, the US goods trade deficit with Canada was $46.4 billion in 2025, according to the Office of the US Trade Representative.<\/p>\n

\n<\/div>\n

Last year, Trump imposed sweeping,\u00a0double-digit tariffs on virtually every country after declaring the US trade deficit a national emergency.\u00a0<\/p>\n

In February, the Supreme Court struck down the so-called \u201cLiberation Day\u201d tariffs, ruling the president did not have the authority under the International Emergency Economic Powers Act (IEEPA) to impose them.\u00a0<\/p>\n

For the latest round of levies against Canada, Trump invoked Section 338 of the Tariff Act of 1930 \u2013 a Great Depression-era law that has never been used.\u00a0<\/p>\n

Section 338 authorizes the commander-in-chief to impose tariffs of up to 50% on imports from countries that have discriminated against US businesses. No trade investigation is required and there is no time limit on how long the tariffs can stay in place under Section 338.<\/p>\n

Trump has claimed that Canada discriminates against American exports of cars, alcohol and cheese. Canada and China were the only countries that issued retaliatory tariffs against the US in response to Trump\u2019s levies last year.\u00a0<\/p>\n

\u201cIf a country retaliates against us, we\u2019re obviously not going to tolerate that,\u201d Greer, the US trade rep, said last week. \u201cWe\u2019ll take action. My sense is the Canadians, they want to have a more conciliatory approach, but we\u2019ll see.\u201d<\/p>\n

Read more Mount Fuji hiker leaves tired son, 7, behind to reach iconic summit: \u2018Wait here\u2019<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A hefty new tariff on a wide range of products from Canada took effect Saturday after US and Canadian negotiators failed to reach a last-minute agreement to avert the duties.<\/p>\n","protected":false},"author":1,"featured_media":7153,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nTrump\u2019s 50% tariffs on $20B in Canadian goods take effect after last-minute talks collapsed - Metro Transit Review<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/metrotransitreview.com\/?p=7154\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s 50% tariffs on $20B in Canadian goods take effect after last-minute talks collapsed - 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