Negotiations between the United States and Canada hit a dead end late Friday, resulting in the Trump administration’s decision to move forward with a 50 percent tariff on roughly $20 billion worth of Canadian goods. According to a senior official, these measures are set to take effect shortly after midnight on Saturday under Section 338. The collapse of the agreement follows three days of intensive discussions in Washington between US Trade Representative Jamieson Greer and Canadian trade minister Dominic LeBlanc.

In response to the announcement, Canadian Prime Minister Mark Carney confirmed that all trade negotiations have been officially suspended. He warned that Canada intends to match the US move with dollar-for-dollar retaliatory tariffs, signaling a significant deterioration in economic relations between the two neighbors. As the situation unfolds, the move marks a sharp escalation in North American trade policy that is expected to have immediate impacts on cross-border commerce.