US 50% tariffs on $20 billion Canadian goods take effect as trade deal collapses

The United States has imposed 50% tariffs on about $20 billion worth of Canadian goods after last-minute negotiations between the two countries failed to produce an agreement.

The tariffs will take effect at 12:01 a.m. EDT on Saturday and cover around 5% of the goods Canada exports to the United States annually. Products affected include items ranging from hockey sticks to tongue depressors.

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A senior Trump administration official said the tariffs followed disagreements over a limited number of areas in which Canada sought greater relief from US tariffs imposed under Section 232, reported Reuters.

“It was just a couple of areas where Canada wanted more Section 232 tariff relief than U.S. was willing to give,” the official said.

The official said the administration's focus was on protecting US jobs, securing supply chains and encouraging manufacturing in the country.

“Our sole interest is protecting Americn jobs, securing supply chains and reshoring manufacturing,” the official said.