The United States imposed 50 per cent tariffs on $20 billion worth of Canadian products on Saturday. Canada immediately said it would retaliate and suspended trade negotiations with the US after last-minute changes to Washington’s proposed terms, with Prime Minister Mark Carney saying the terms were “unfair” and “uneconomic”.Carney said Canada had made significant progress in recent weeks towards securing better access to the US market but that the proposed terms still fell short of Ottawa’s objectives.“As a result, this evening, I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa,” he said in a statement. He said last-minute changes in the US proposal had called into question “the reliability of any deal”.Carney said Washington intended to impose a 50 per cent tariff on roughly $28 billion of Canadian goods and that Canada would respond with equivalent tariffs to protect its workers and businesses.The latest breakdown comes after three days of intensive negotiations in Washington. Earlier this week, US President Donald Trump had paused the planned tariffs for three days as the two sides appeared close to a deal.Carney said his government had never sought “a deal at any price or on any deadline”.He said Canada had recognised from the outset that its relationship with the US had changed, with Washington increasingly using tariffs and market access as tools in its trade relations, including with traditional allies.Canada had sought tariff-free access for most of its businesses, lower US tariffs on key sectors and greater certainty for Canadian companies, while retaining what Carney described as Canada’s “flexibility, independence, and sovereignty”. The US, however, said Canada had rejected an offer that would have given it preferential treatment.US Trade Representative Jamieson Greer said Canada had declined to finalise a deal after making new demands and backing away from commitments reached earlier in the week. He said Washington had offered significant tariff reductions on Canadian steel, aluminium, automobiles and lumber, along with a broader economic and national security partnership covering export controls, digital trade, critical minerals and supply chains.“This is a missed opportunity for Canada to partner with the United States,” Greer said.The collapse of the talks threatens to deepen an economic dispute that has already lasted 18 months. Canada is heavily dependent on the US market, while the two countries have deeply integrated supply chains across sectors ranging from automobiles and energy to manufacturing.Carney, however, sought to portray the confrontation as part of a broader effort to reduce Canada’s dependence on its southern neighbour.He said Ottawa would introduce additional measures to support Canadian workers and businesses, building on nearly $25 billion in support provided over the past 18 months.“We will not allow any nation to determine our future,” Carney said. “We will set our own course to keep building Canada strong for all.”The immediate focus now shifts to the economic impact of the new tariffs and whether the two sides can return to negotiations after the latest breakdown.