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U.S.-Canada Trade Deal Collapses | Europe News
Description
A major U.S.-Canada trade deal collapsed just days after President Trump hailed it as a breakthrough, sparking fears of a damaging trade war. Last-minute demands—like Canada’s push for lower truck tariffs—and alleged internal U.S. political infighting derailed negotiations. With a 50% tariff already slapped on $20 billion in Canadian goods and retaliatory measures promised by Canada, businesses brace for economic fallout that could drag Mexico into the fray. Key disputes over car, steel, and aluminum tariffs exposed friction between Commerce Secretary Howard Lutnick and the Trade Representative’s office, though the White House denies any rift. With no new talks scheduled, both nations are preparing for escalating tensions—and pressure is mounting to restart negotiations before damage spirals further.
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