US and Canada escalate trade dispute after talks collapse

Trade negotiations between the United States and Canada have formally collapsed, leading Washington to enact 50% punitive tariffs on a broad selection of Canadian imports. The measures, which took effect overnight following the expiration of a White House deadline, affect between $20 billion and $28 billion in goods, including products previously protected under regional free trade arrangements.

Canadian Prime Minister Mark Carney announced the suspension of ongoing discussions with US officials and pledged that Ottawa would respond with equivalent reciprocal levies to shield domestic industries and workers. Both capitals have blamed the opposing side for the breakdown following three days of intensive talks, deepening economic tensions between the neighboring partners.

Sources: Der Spiegel, NOS (Nederlandse Omroep Stichting), NRC, ORF, Tagesschau.