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New 50% tariffs on Canadian goods are scheduled to take effect at midnight
Yahoo Finance • • nation
Key Points:
- New tariffs of up to 50% on Canadian goods are set to take effect at midnight unless ongoing negotiations between President Trump and Canadian Prime Minister Mark Carney lead to an agreement to avoid them.
- The tariffs target about 5% of Canadian goods imported by the US, including automobiles, alcohol, and dairy products, and could signal the future of the US-Mexico-Canada Trade Agreement (USMCA).
- Talks have been described as intense and delicate, focusing on potential concessions such as reducing US duties on Canadian metals and lumber in exchange for improved market access for US dairy products and reduced Canadian retaliatory tariffs.
- Tensions remain high, with US officials criticizing Canadian retaliations and disputes persisting over restrictions on US wines and liquors, while the auto sector remains a major sticking point.
- Canadian business leaders warn that imposing the tariffs would harm both economies, increase costs for US families, disrupt supply chains, and threaten millions of jobs reliant on USMCA trade.
