Canada has suspended trade negotiations with the United States after the two countries failed to reach an agreement before the deadline for new American tariffs.


Canadian Prime Minister Mark Carney announced the decision on Friday, saying last-minute changes to the terms proposed by Washington were unfair and economically unacceptable. He subsequently directed Canada’s negotiating team to return to Ottawa.


The decision came as the United States moved to impose 50 per cent tariffs on about $20 billion worth of Canadian goods, with the new duties taking effect at midnight. The affected products include items such as hockey equipment and other Canadian exports.


In response, Carney said Canada would match the US tariffs “dollar for dollar”, signalling a further escalation in the trade dispute between the two neighbouring countries.


The breakdown followed days of intensive negotiations after US President Donald Trump temporarily delayed the proposed tariffs to give both sides more time to reach a deal.


However, the negotiations ultimately failed, with Canada maintaining that the latest US proposals did not adequately protect its economic interests. The United States, meanwhile, accused Canada of failing to accept terms that Washington considered favourable.


The collapse of the talks is expected to further strain economic relations between the two countries and could complicate future discussions surrounding the United States-Mexico-Canada Agreement (USMCA).