US imposes 50% tariffs on Canada as trade talks collapse
Fox News correspondent Alex Hogan reports on the collapse of U.S.-Canada trade talks, which prompted 50% tariffs on $20 billion in Canadian goods. Canadian Prime Minister Mark Carney criticizes the tariffs, warning they will burden consumers.
NEWYou can now listen to Fox News articles!
President Donald Trump’s trade talks with Canada have stalled – with threats of retaliatory tariffs ramping up again – but Vice President JD Vance was in Maine, explaining to voters that Canada has been friendlier to China on trade than to them, particularly farmers.
“They treat Chinese goods more fairly than they do the goods that come from the people of Maine: It’s insanity,” Vance said during a question-and-answer session in Brewer, Maine, on Monday afternoon. “And what we’ve said to Canada is stop it.”
Vance said he believes the U.S. and Canada had been close to reaching a trade agreement before negotiations broke down, blaming Ottawa for bringing what he described as “unreasonable last-minute demands” to the table.
TRUMP TRADE CHIEF WARNS CANADA WALKED AWAY FROM ‘THE BEST DEAL’ TO TRIGGER 50% U.S. TARIFFS
Vice President JD Vance thoroughly explained the basis of American protectionism to the voters in Brewer, Maine, calling out Canada for treating China more favorably on trade than it does for Mainers. (Anna Moneymaker/Getty Images)
“I frankly thought we had a deal,” Vance said. “I think that we should have a deal, but I think that we need to send a message loud and clear to the prime minister of Canada: Stop taking advantage of the people of Maine. Stop taking advantage of America. It’s over.”
Canadian Prime Minister Mark Carney announced Friday that Canada was suspending negotiations. Trump posted Monday on Truth Social that he plans to impose 50% tariffs on Canadian-made vehicles, auto parts and steel beginning in January 2027.
“Canada has been ripping off the United States of America for years,” Trump wrote. “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 ALLIES PUSH TO ARM PRESIDENT WITH NEW TARIFF WEAPON TO PUNISH COUNTRIES ‘RIPPING OFF’ AMERICA
Vance made the remarks during an appearance at Compotech, a defense technology manufacturer in Brewer, as the vice president fielded a question about how the administration’s tariffs could affect Maine businesses and consumers.
“We’re very mindful of the fact that Maine is a border state with Canada,” Vance said. “There’s a lot of cross-border transaction between Maine and Canada. And what we’re trying to do here is just make sure that Maine actually gets a fair deal.”
Vance argued that Canada and China have been among the worst offenders when it comes to trade barriers against the U.S., while drawing a sharp distinction between what Washington expects from an economic competitor and from a longtime ally.
CHAD WOLF: AMERICA CANNOT IGNORE CHINA’S ECONOMIC ATTACK ON US INDUSTRY
“China, you of course expect — they’re our biggest economic competitor,” Vance said. “I would expect that from China. I would not expect that from Canada.”
Vance then briefly referred to Canada as a “state” before immediately correcting himself, referencing Trump’s long-running trolling of Canada, teasing it as the 51st state.
“We have to remember Canada is a state — sorry, Freudian slip — that was actually an accident,” Vance said. “Canada is a country that has underinvested in its military that quite literally would get invaded by a foreign country were it not for the umbrella of protection provided by the United States of America.”
CHAD WOLF: CANADA CAN’T EXPECT FREE TRADE WHILE LEAVING OUR NORTHERN BORDER VULNERABLE
He argued that Canada had responded to that relationship by imposing trade restrictions on American products while expecting the U.S. not to retaliate.
“They apply ridiculous tariffs and other non-tariff duties on Maine products coming into Canada, and they don’t expect Maine or anybody else to fight back,” Vance said. “We’re sick of that.”
“We are actually going to fight back against unfair trade practices, whether it’s coming from China or Canada.”
TRUMP ADMINISTRATION EXPANDS ‘PRODUCT OF USA’ LABEL AS PUSH FOR AMERICAN-RAISED BEEF GROWS
Vance pointed specifically to dairy products, contrasting the treatment of Canadian products entering Maine with the tariffs that can apply when U.S. dairy exports exceed Canada’s tariff-rate quotas.
“If a Maine farmer sends dairy products into Canada, they could be paying as much as a 250% tariff,” Vance said. “Now, how is it fair to the farmers of Maine that they pay 250% when the Canadian farmers pay nothing?”
CANADA REPORTEDLY SCRAPS JOINT BRIDGE CELEBRATION WITH US AFTER TRUMP RENEWS TARIFF THREAT
Canada’s dairy system provides duty-free access for set quantities of U.S. products under the U.S.-Mexico-Canada Agreement, but steep tariffs can apply once imports exceed those quotas. Canada’s tariff schedule, for example, lists a 241% over-quota rate for certain milk products, while other dairy categories can carry even higher rates.
Vance also accused Canada of allowing Chinese goods to use the country as a route into the North American market, saying that issue had become part of the latest negotiations.
“We know that Canada allows itself to be used as a back door for Chinese goods,” Vance said.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Vance nevertheless left open the possibility of the two sides returning to an agreement, even as he made clear the administration was prepared to keep tariffs in place without concessions from Ottawa.
“I think that we should have a deal,” Vance said. “We expect fairness in our trade policy.”