Trade talks between the U.S. and Canada collapsed in dramatic fashion, triggering a 50% tariff on $28 billion worth of Canadian goods — a move that sent shockwaves through both economies. After President Trump touted a breakthrough deal, Canadian Prime Minister Mark Carney abruptly halted negotiations, calling U.S. last-minute demands “unfair” and “uneconomic,” accusing Washington of trying to renegotiate after progress was made. Canada retaliated with matching tariffs to shield its workers and businesses. The U.S. Trade Representative countered that Canada walked away from previously agreed terms, claiming it was Canada that backed out. With the U.S. economy booming, this breakdown represents a major missed opportunity — and Canada is now preparing deeper economic safeguards as tensions escalate across everything from dairy and liquor to hockey gear and vehicles.
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