US lawmakers criticise Trump tariffs after Canada trade talks collapse

A bipartisan group of US lawmakers has warned that the collapse of trade negotiations with Canada and the imposition of 50 per cent tariffs could drive up prices, disrupt cross-border businesses and deepen uncertainty in one of the United States’ most important economic relationships.

The new US tariffs on a range of Canadian products took effect Saturday after Washington and Ottawa failed to reach an agreement. Canada has responded by promising dollar-for-dollar retaliatory tariffs, escalating tensions across the two countries’ deeply integrated economies.

Republican senator Susan Collins said the “on-again, off-again” negotiations had already created higher costs, risks and uncertainty for businesses in her home state of Maine. She warned that if the tariffs remain in place, many businesses would have little choice but to pass the additional costs on to consumers.

Maine imports roughly $2 billion worth of non-petroleum products from Canada each year. Collins said farmers, lobstermen and other businesses in the state were particularly concerned about potential supply-chain disruptions, shortages and Canadian retaliation.

She urged the Trump administration and the Canadian government to return to the negotiating table and work towards what she called a fair agreement.

Democratic senator Peter Welch of Vermont, a member of the Senate Finance Committee, described the tariffs as a “slap in the face” to businesses and farmers in Vermont and other northern border states. He warned that commercial ties built over decades were at risk and called on President Donald Trump to find an “off-ramp” from the escalating trade confrontation.

Welch also argued that Congress should reclaim its constitutional authority over tariffs, saying lawmakers had ceded too much control over trade policy to the executive branch. The latest dispute has renewed calls on Capitol Hill for legislation requiring greater congressional oversight of presidential tariff decisions.

Representative Richard Neal, the senior Democrat on the House Ways and Means Committee, accused Trump of changing his demands at the last minute and undermining negotiations with one of America’s closest allies and trading partners. He warned that US workers, businesses and consumers would ultimately bear the economic cost.

Canadian Prime Minister Mark Carney said Ottawa walked away from the negotiations after Washington introduced new terms that Canada considered unfair and economically damaging.

Carney said the United States had “asked too much and offered too little”, insisting that Canada would not compromise its sovereignty, cultural protections or key industries to secure a trade agreement.

The Canadian government said the United States planned to impose 50 per cent duties on around C$28 billion worth of Canadian products. Ottawa has vowed to respond with matching tariffs while providing additional assistance to workers and businesses affected by the dispute.

US Trade Representative Jamieson Greer, however, placed the blame on Canada. He said Ottawa had declined to finalise terms that had been discussed earlier and had subsequently withdrawn or altered commitments made during the negotiations.

The dispute poses a significant threat to the highly integrated US-Canada economy. Goods, components and raw materials routinely cross the border multiple times before reaching consumers, particularly in the manufacturing, agriculture, energy and transportation sectors.

Businesses on both sides of the border now face higher costs and greater uncertainty as the tariffs take effect. For border states such as Maine and Vermont, where trade with Canada supports a wide range of industries and local businesses, lawmakers fear the impact could be especially immediate.

The confrontation has also intensified a broader political debate in Washington over the extent of presidential authority to impose tariffs. With bipartisan lawmakers calling for Congress to have a greater say, the Canada dispute could fuel efforts to place new limits on the executive branch’s power over trade policy.

For now, the breakdown has left one of America’s most important trading relationships facing renewed tariffs, retaliatory measures and growing pressure on both governments to return to the negotiating table.

With IANS inputs