A fresh wave of U.S. tariffs on a wide array of Canadian goods came into effect on Saturday, following a last-minute breakdown in trade negotiations. Canadian Prime Minister Mark Carney announced the suspension of talks shortly before a Friday night deadline, stating that Canada would impose reciprocal tariffs on U.S. goods "dollar for dollar."

This escalation follows months of tense negotiations and threats from U.S. President Donald Trump to impose substantial levies on Canadian imports. The breakdown marks a significant shift from earlier optimism, as negotiators had been engaged in intensive discussions since July.

Prime Minister Carney cited "unfair" and "uneconomic" last-minute changes in the U.S. proposed terms as the reason for suspending negotiations. He indicated that these changes "called into question the reliability of any deal," and that while progress had been made, it was insufficient to meet Canada's objectives.

The U.S. Trade Representative, Jamieson Greer, stated that Canada "declined to finalise the trade deal under the terms agreed earlier this week." Greer added that "new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days."

Negotiators had reportedly been discussing a deal that would reduce U.S. tariffs on Canadian steel and aluminum from 50% to 25%, and on Canadian autos from 25% to 15%. In return, Canada had been asked to allow U.S. alcohol back onto store shelves.

The tariffs, imposed by the U.S. under the Depression-era Tariff Act of 1930, will affect a range of goods including wine, dairy, cement, clothing, and hockey equipment. These are in addition to existing U.S. tariffs on Canadian steel, aluminum, autos, and lumber.

Businesses and stakeholders on both sides of the border had advocated for a deal, warning that the new tariffs would be detrimental to both economies. The Canadian Chamber of Commerce described the tariffs as a "body blow to North American competitiveness."

The current trade dispute is part of a broader pattern of U.S. tariff actions since President Trump took office, disrupting decades of free trade between the two nations and raising questions about the future of North American economic relations.