The United States imposed 50 percent tariffs on approximately $20 billion worth of Canadian goods early Saturday after Canada rejected the terms of a last-minute trade deal. The tariffs, which cover items including alcohol and hockey skates, went into effect following the collapse of negotiations just before a midnight Friday deadline.

Canadian Prime Minister Mark Carney announced the decision to suspend talks, stating that last-minute changes proposed by the U.S. were unfair and undermined confidence in reaching an agreement. Carney said Canada would match the U.S. tariffs dollar for dollar to protect domestic workers and businesses.

U.S. Trade Representative Jamieson Greer confirmed during a White House briefing that Canada had declined to finalize the deal under the terms discussed earlier in the week. The move marks the latest escalation in the ongoing trade tensions between the two countries.

The tariffs stem from broader disputes over trade imbalances, border security, and the flow of fentanyl. Earlier this year, the U.S. chose not to renew the USMCA in its current form and has pursued adjustments to the agreement originally negotiated during President Trump's first term.

Canadian officials have described the U.S. actions as violations of existing trade pacts, while the Trump administration has emphasized the need to address unequal treatment of American exports and protect national interests. Reciprocal measures from Canada are expected to follow promptly.

Economists note that the tariffs could disrupt supply chains and raise costs for consumers on both sides of the border. Further talks remain uncertain as both nations assess the impact of the new measures.