U.S.-Canada Trade Talks Have Collapsed. Washington’s Trade Representative Says Ottawa Is To Blame.

U.S. Trade Representative Jamieson Greer said Canada is to blame for the collapse of trade negotiations with Washington.

Speaking to CNBC, Greer said talks had progressed to a point "where we had enough agreement among the parties to announce" that a deal could be announced.

"Then we set about to finalize it, and then in the last hours, I think there were things that the Canadians just — you know, they wanted more," he added.

Canadian Prime Minister Mark Carney, on his end, said Washington actually introduced last-minute demands that led talks to collapse. He called them "unfair, uneconomic, and called into question the reliability of any deal."

Tariffs imposed by the U.S. went into effect on Saturday. They amount to 50% on some $20 billion worth of goods including dairy, wine, wood products, furniture, cement, ceramics, and other areas.

Trump expanded the measure on Monday, saying in a social media post that "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%."

"Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE!" Trump said when announcing the decision.

Canadian Prime Minister Mark Carney promised to retaliate against U.S. goods, saying the country would target sectors such as steel, dairy, agricultural equipment, paper and electronics. The retaliatory tariffs would likely come sometime in September. He claimed that the country will retaliate with "dollar for dollar" tariffs against Washington.

Earlier this year, much of Trump's original tariff policy was undone by the U.S. Supreme Court. In that instance, Trump had used the 1977 International Emergency Economic Powers Act (IEEPA) to implement sweeping tariffs unilaterally.

In ruling against Trump, the Supreme Court wrote that the president had not identified "clear congressional authorization" to issue tariffs. It noted that the IEEPA "contains no reference to tariffs or duties." The court defeat meant the U.S. government had to refund tens of billions of dollars to companies because the tax was illegal.