US-Canada Trade Talks Fail to Reach Deal; 50% Tariffs on $20 Billion in Goods Set for Saturday
US and Canadian negotiators failed to finalize a trade agreement after additional talks in Washington, leaving 50% tariffs on about $20 billion in Canadian imports, including hockey sticks and wine, set to take effect at 12:01 a. m. ET Saturday. Trump's statement suggested the deal is nearly complete, subject to finalization, but officials did not agree. Key disputes remain, including US tariffs on Canadian steel, aluminum, and lumber. Canada has pledged to lower trade barriers without specifics, and the tariff threat partly stems from alleged discrimination against US dairy. The tariffs rely on Section 338 of the Tariff Act of 1930, rarely invoked.
The United States and Canada have not announced a final trade agreement to prevent new tariffs imposed by President Donald Trump on Canadian goods such as hockey sticks and wine from taking effect early Saturday. Trump's statement suggested the deal is largely done, "subject to finalization of documents." But trade officials have yet to reach a final agreement after additional talks in Washington on Wednesday and Thursday.
LeBlanc noted that Canadian negotiator Janice Charette remains in talks with US Trade Representative Jamieson Greer and other Trump administration officials. "Canadians expect us to reach a deal that serves Canada's economy and Canadian workers," LeBlanc said.
If no agreement is reached before 12:01 a. m. ET Saturday, 50% tariffs on about $20 billion in imports will take effect. Negotiators have remained tight-lipped about the details and remaining points of contention. Trump's existing tariffs on Canadian steel, aluminum, and lumber are a central issue.
The Trump administration said Canada has committed to lowering trade barriers to the United States, but did not provide specifics. Trump said Wednesday that Canadian tariffs on US farmers "will no longer exist." The looming 50% tariff threat is based in part on alleged discrimination against the US dairy industry, though Canada has not confirmed that claim.
The tariff threat is based on Section 338 of the Tariff Act of 1930, which allows the president to impose tariffs for discriminatory or unfair business practices—a Depression-era law that has rarely been invoked in decades.