Tariff crisis Trump's tariff policy

Negotiations collapsed – now the US faces tariffs on Canada

The US and Canada have been unable to reach an agreement to avoid Donald Trump's tariffs. This is reported by several American media outlets.

On Saturday, the US will therefore impose 50 percent tariffs on certain Canadian goods.

According to US Trade Representative Jamieson Greer, the result depends on Canada, writes the New York Times.

- Despite the US offer to Canada to receive the best treatment from all major exporters to our market.

According to Canadian Prime Minister Mark Carney, the country will support its companies in the coming days, writes the AP.

- Last-minute changes to the US proposed terms were unfair, uneconomical and questioned the reliability of all agreements.

Canada: Will match Trump's tariffs "dollar for dollar"

Canada cannot accept the US terms for a trade agreement, says Prime Minister Mark Carney according to AFP.

– We cannot accept what they have offered, and we will not give them what they have asked for, he says.

Instead, Canadian retaliatory tariffs will be introduced from September 8.

Earlier in the day, Carney said that he will match the US trade tariffs “dollar for dollar”.

During the night Swedish time, negotiations between the countries collapsed and the US therefore introduced 50 percent tariffs on certain Canadian goods.

Expert: US is now breaking a previously protected agreement

The fact that Donald Trump's 50 percent tariffs on certain Canadian goods are now coming into force is a severe blow to the USMCA, the free trade agreement between the neighboring countries and Mexico. This is what economic expert Richard Ouellet tells AFP.

Several of the goods now covered were previously protected by the USMCA.

– Until now, the USMCA has functioned as a kind of protection. The Americans are now opening a loophole in the agreement, he says.

This summer, Trump chose not to renew the free trade agreement, which came into effect six years ago.