Talks between Ottawa and Washington collapsed hours before the deadline, and Carney says Canada will match the tariffs dollar for dollar.
A new 50% U.S. tariff on Canadian goods took effect early Saturday, hours after Prime Minister Mark Carney suspended trade talks with the U.S. before the deadline.
The list covers dairy, cut flowers, seeds, honey and dozens of other agricultural and horticultural products.
Key Facts
- The tariff list covers milk, cream, whey and casein, alongside cut flowers, bulbs and vegetable seeds.
- Carney's office puts the newly tariffed goods at roughly $28 billion; CTV News and CNBC cited $20 billion.
- The deadline followed a three-day extension Trump granted Tuesday to allow more negotiating time.
Trade Minister Dominic LeBlanc and chief negotiator Janice Charette had been in Washington for a third straight day of talks Friday.
They were pushing for a deal that would lower US tariffs on steel, aluminum, autos and lumber, but the talks ended without an agreement.
At 12:01 a.m. ET Saturday, the new tariff took effect on top of tariffs already in place from earlier rounds of the dispute.
Carney's office put the value of the newly tariffed goods at roughly $28 billion.
CTV News and CNBC separately reported the figure at closer to $20 billion.
What Products Are Now Subject to the 50% Tariff
The tariff spans three separate US lists: dairy, alcoholic beverages, and a broad catch-all category the US labelled "Motor Vehicles," which, despite the name, contains no cars.
The lists are laid out in White House annexes reviewed by the Canadian Federation of Independent Business. The dairy list includes milk and cream powders, whey protein concentrates, casein and lactose.
Also newly taxed at 50%:
- Cut flowers, including roses, chrysanthemums and lilies
- Dormant tulip, lily and hyacinth bulbs
- Vegetable and tree seeds sold for sowing
- Honey and hop cones
- Essential oils used in food and fragrance production
The list reaches further into horticultural and food exports than earlier coverage of the dispute, which had centered on steel, aluminum and autos.
Why the Canada-US Trade Talks Broke Down
Last-minute changes to the US proposed terms were unfair and uneconomic, Carney's office said in a statement late Friday.
The changes called into question the reliability of any deal, the statement added. Carney directed Canada's negotiators to return to Ottawa.
US Trade Representative Jamieson Greer said in a statement Friday night that Canada had declined to finalize the deal.
The move "upended the careful balance reached in the past days," the statement read. Per Greer's statement, the US had offered steep cuts to tariffs on steel, aluminum, autos and lumber in exchange.
Canada, in turn, kept its restrictions on American alcohol and government procurement in place.
What Happens Next for Canadian Exporters
Carney's office confirmed Canada intends to respond in kind. "Canada will match those tariffs dollar for dollar," the statement read.
It did not specify which US goods would be targeted or when a Canadian countermeasure would take effect.
Ontario Premier Doug Ford backed the prime minister's approach in a social media post. He called for a response "tariff for tariff, dollar for dollar."
Trump had already delayed the same 50% tariff once, pausing it for three days on Aug. 18 to allow more negotiating time. That extension expired at the deadline early Saturday.
