Design and Construction Report staff writer
Canada has walked away from trade negotiations with the United States, Prime Minister Mark Carney said in a statement late Friday, clearing the way for new 50 per cent tariffs threatened by President Donald Trump to take effect on $28 billion worth of Canadian goods including cement, drywall, hardwood products and other construction materials.
“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week, despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market,” United States Trade Representative Jamieson Greersaid during a virtual briefing with reporters. “New demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days.”
Shortly before Greer’s statement, the U.S. Customs and Border Protection sent out guidance for importers saying that the Canadian products that the president had identified would face tariffs after 12:01 a.m.
Canada wanted concessions that the United States wasn’t prepared to give, particularly when it came to the automotive sector, as well as trade in steel, aluminum and lumber, a spokesperson told reporters.
However, in a written statement released shortly before midnight, Carney said “last minute changes in the U.S. propose terms were unfair uneconomic and called into question the reliability of any deal.”
Canada will retaliate with dollar-for-dollar tariffs.
“In recent weeks, we made important progress toward improving Canada’s position a having the best deal in the world with the U.S.,” Carney wrote. “However, that progress has not been enough to met our objectives for Canadians.
“As a result, this evening, I have decided to suspend trade negotions with the U.S. and have directed Canada’s negotiators to return to Ottawa.
