[Edaily Marketin Reporter JI YEONG-EUI ] Trade negotiations between the United States and Canada have collapsed after a last-minute standoff. The U.S. has imposed a 50% tariff on approximately $20 billion (about 28 trillion won) worth of Canadian goods, and Canada has warned it will retaliate with tariffs of the same magnitude, raising the prospect of a renewed escalation in the trade war between the two countries.

According to foreign media outlets such as AP and AFP on the 21st (local time), U.S. Trade Representative (USTR) Jamison Greer stated that Canada refused to finalize the trade agreement under the terms agreed upon earlier this week.

Canadian Prime Minister Mark Carney criticized the U.S. for changing the terms of its original proposal at the last minute. Both sides appear to be blaming each other for the breakdown in negotiations.

Last month, U.S. President Donald Trump announced that he would impose a 50% tariff on certain Canadian imports, claiming that Canada was discriminating against the United States in the automotive, alcoholic beverage, and dairy sectors.

The tariffs were originally scheduled to take effect on the 19th. After speaking with Prime Minister Carney, President Trump delayed the implementation of the tariffs by three days to allow negotiations to continue, but the two sides failed to reach an agreement even by the extended deadline.

Along with the tariff postponement, Canada demanded that the U.S. withdraw the automobile and steel tariffs it has already imposed. Negotiations hit a snag as the U.S. countered by demanding an end to the boycott of U.S.-made alcoholic beverages currently underway in some Canadian provinces.

The proposed 50% tariffs would apply to approximately $20 billion worth of goods, accounting for about 5% of Canada’s annual exports to the United States. It has been reported that a variety of products, including Canadian-made hockey sticks and cement, are included in the list.

Prime Minister Carney stated that Canada would respond to the U.S. tariff measures with “dollar-for-dollar” tariffs of the same amount. If the two countries actually impose retaliatory tariffs on each other, there is a high likelihood that the U.S.-Canada trade dispute—which had calmed down for a while—will escalate again.