From August 22, the USA imposed a 50% tariff on a number of products imported from Canada. The decision was made after intensive negotiations between the US and Canada failed.
The new tariffs affect about $20 billion of Canadian exports, more than 5% of the total volume of goods exported from Canada to the United States. The list includes wine, furniture, dairy products, cement, clothing, fishing tackle and hockey equipment.
In recent days, the parties have been trying to reach a broader trade agreement. The reduction of the current 25% tariff on Canadian cars to 15%, as well as the easing of restrictions in the steel and aluminum sectors, were also discussed. Canadian Prime Minister Mark Carney announced that the US changed its proposed conditions at the last stage of negotiations, calling them unfair. Canada has announced that it is going to respond to the new US tariffs on a dollar-for-dollar basis.
US representatives, however, claim that the agreement was not reached because of Canada's position, calling it a "missed opportunity".
