The U.S. and Canada have failed to strike a trade agreement, triggering the immediate implementation of 50% tariffs on approximately $20 billion worth of Canadian goods.

Last week, President Donald Trump said the two countries were close to striking a long-anticipated deal and that the levies, first announced in July, would be delayed as a result. That agreement did not happen after talks between trade representatives broke down just before the midnight deadline on Friday, Aug. 21.

Prime Minister Mark Carney has promised “dollar for dollar” retaliatory duties to go into effect on Sept. 8 on a slew of products, including steel, dairy, appliances, agricultural equipment, paper and electronics.

“Canada wants the benefits of being a State, without being one,” President Trump posted on Truth Social. “They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!”

Talks between the two countries have been put on pause indefinitely.

The list of affected Canadian exports is wide-ranging, and includes hockey sticks, wine, cement, honey, select clothing, jewelry, furniture, cameras and more. Some products were previously deemed tariff-free under the USMCA, which is now up for review.

President Trump announced the 50% tariffs last month under Section 338 of the Tariff Act of 1930, which allows the president to put levies of up to 50% on countries that have discriminated against American businesses. President Trump has said that Canada is unfairly targeting American cars, alcohol and dairy products with high levies.

Canadian Prime Minister Mark Carney held a news conference over the weekend regarding the negotiation breakdown. “We have consistently proposed long-term partnerships, while America has often pursued short-term transactions,” he said. “That gap between partnership and competitor has remained too wide in recent days. Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what they have offered, and we will not give what they have asked.”

In his remarks, the Prime Minister did not give specifics but did allude to last-minute changes and demands that would cause Canada to compromise its sovereignty, key industries like metals and vehicles, and protection of its French language and culture.

Meanwhile, the American negotiators said Canada failed to finalize the terms agreed upon earlier in the week, which included not just tariff relief but also supply chain cooperation terms in the aerospace and critical minerals sectors, and the announcement of a formal USMCA review.