US Trump administration imposes additional 50% tariffs on Canada; trade talks break down

[Washington, New York Current Affairs] On the 22nd, the Trump administration imposed additional 50% tariffs on Canada. Meanwhile, Canadian Prime Minister John Carney announced on the night of the 21st that he would take similar retaliatory measures. The two governments pushed forward with negotiations until the very last minute to reach an agreement, but trade talks broke down. This resulted in intensifying trade friction between the two countries.

"Canada's new demands upset the careful balance reached over several days," the Office of the U.S. Trade Representative (USTR) said in a statement on Wednesday. Canada has refused to finalize the agreement.

The 50% additional tariff applies to approximately $20 billion (approximately 3.18 trillion yen) of food and industrial products imported from Canada. This is the first time that tariffs have been imposed under Section 338 of the Customs Act, which combats discriminatory trade measures, and also includes products that comply with the United States-Mexico-Canada Agreement (USMCA) trade agreement.

In response, Mr. Carney issued a statement after negotiations broke down, stressing that he would take measures on par with U.S. tariffs to protect workers and businesses. He said there had been "significant progress" in negotiations, but that "it was not enough to achieve our goals."

According to reports, Canada's Minister of Trade with the United States LeBlanc visited the USTR in Washington, D.C., again on the 21st. Talks have been held intermittently ahead of the deadline to implement the measures, including the US administration's reduction in tariffs on steel, aluminum and automobiles, and Canada's ban on the sale of US alcoholic beverages.

In July, the U.S. administration expressed dissatisfaction with Canada's automobile tariffs and alcohol boycott campaign, and announced it would impose an additional 50% tariff. However, on the night of the 18th of this month, President Trump postponed the 50% additional tariff that was about to go into effect for three days at the last minute. The explanation for the deal was that ``Canada and the United States reached an agreement on the condition that the document be finalized.''