Canada's retaliatory tariffs take effect after U.S. trade talks stall

Canada’s retaliatory tariffs on U.S. goods took effect just after midnight Tuesday after U.S.-Canada trade talks stalled, escalating an 18-month trade dispute. Prime Minister Mark Carney increased pressure following the collapse of negotiations last month. The counter-tariffs cover $20 billion of U.S. exports, with duties ranging from 15% to 50% across products including steel, furniture, clothing and electronics, as well as wine, dairy, cement and hockey equipment. The retaliation is described as dollar-for-dollar, with both sides trading blame. The dispute adds uncertainty to the U.S.-Mexico-Canada free trade agreement, which faces annual reviews after President Donald Trump did not extend it for another decade. Carney said Canada was ready to sign a mutually beneficial deal, while Reuters reports no talks currently among ministers.