Trade negotiations between the US and Canada broke down on Friday, partly because the two sides remained deadlocked over the cancellation of US tariffs on Canadian medium and heavy vehicles at the final stage of the negotiations. The two sides have already formed a framework of agreement and are planning to lower US industry tariffs on automobiles, steel, aluminum, and timber, and intensive negotiations were held on Friday, but there are still serious differences over the treatment of large vehicles. During a telephone conversation on Friday evening, Canada insisted on getting the additional tariff relief mentioned above, which was rejected by the US side. According to the agreement to be reached between the two sides, the tariff on ordinary cars will be reduced from the current 25% to 15%. Canada hopes to extend this tariff relief to medium and heavy vehicles, covering large pickups and various types of commercial vehicles. Canadian Prime Minister Carney said on Saturday that the exclusion of trucks from tariff relief “is clearly a major change.” Carney said Ford's new plant in Ontario that produces F-350 and larger pickups “will be excluded if trucks are unable to receive tariff relief. There's no point in doing this.” The US side believes that this claim is an additional requirement outside the framework of the original agreement. The negotiations suddenly broke down, and both sides blamed each other for being responsible. The US immediately imposed new 50% tariffs on Canadian goods worth about $20 billion. Carney announced on Saturday that Canada will implement equal countervailing tariffs on US goods starting September 8.

Trade negotiations between the US and Canada broke down on Friday, partly because the two sides remained deadlocked over the cancellation of US tariffs on Canadian medium and heavy vehicles at the final stage of the negotiations. The two sides have already formed a framework of agreement and are planning to lower US industry tariffs on automobiles, steel, aluminum, and timber, and intensive negotiations were held on Friday, but there are still serious differences over the treatment of large vehicles. During a telephone conversation on Friday evening, Canada insisted on getting the additional tariff relief mentioned above, which was rejected by the US side. According to the agreement to be reached between the two sides, the tariff on ordinary cars will be reduced from the current 25% to 15%. Canada hopes to extend this tariff relief to medium and heavy vehicles, covering large pickups and various types of commercial vehicles. Canadian Prime Minister Carney said on Saturday that the exclusion of trucks from tariff relief “is clearly a major change.” Carney said Ford's new plant in Ontario that produces F-350 and larger pickups “will be excluded if trucks are unable to receive tariff relief. There's no point in doing this.” The US side believes that this claim is an additional requirement outside the framework of the original agreement. The negotiations suddenly broke down, and both sides blamed each other for being responsible. The US immediately imposed new 50% tariffs on Canadian goods worth about $20 billion. Carney announced on Saturday that Canada will implement equal countervailing tariffs on US goods starting September 8.