Washington, August 23, 2026 (Yes Punjab News)
A bipartisan group of US lawmakers has criticised the collapse of trade negotiations with Canada and warned that the imposition of 50 per cent tariffs could push up prices, disrupt cross-border businesses and add further uncertainty to one of America’s most important economic relationships.
The new US tariffs on a range of Canadian products came into effect on Saturday after negotiations failed to produce an agreement. Canada has announced plans for matching retaliatory duties.
Republican Senator Susan Collins said the “on-again, off-again” negotiations were increasing costs and risks for businesses in her home state of Maine. She warned that companies would likely pass the additional tariff costs on to consumers through higher prices.
Maine imports about $2 billion worth of non-petroleum products from Canada annually, Collins said, adding that farmers, lobstermen and other businesses were concerned about potential supply shortages and Canadian retaliation. She urged Washington and Ottawa to resume talks and reach a fair agreement.
Democratic Senator Peter Welch, 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 said commercial ties built over decades were at risk and called on President Donald Trump to find an “off-ramp” from the dispute.
Welch also urged Republican lawmakers to restore Congress’ constitutional authority over tariffs, arguing that too much power over trade policy had been ceded to the executive branch.
Representative Richard Neal, the ranking Democrat on the House Ways and Means Committee, accused Trump of changing his demands at the last minute and undermining negotiations with a key US ally and trading partner. He warned that American workers, businesses and consumers would ultimately bear the economic consequences.
Canadian Prime Minister Mark Carney said Ottawa suspended negotiations after Washington introduced new terms that Canada considered unfair and economically damaging. Carney said the US had “asked too much and offered too little”, while stressing that Canada would not compromise its sovereignty, cultural protections or key industries.
The Canadian government said the United States intended to impose 50 per cent duties on approximately C$28 billion worth of Canadian products. Ottawa has pledged dollar-for-dollar retaliation and additional support for affected workers and companies.
US Trade Representative Jamieson Greer, however, blamed Canada for the breakdown, saying Ottawa had declined to finalise previously discussed terms and had withdrawn or changed commitments.
The dispute has renewed calls in Congress for legislation requiring legislative review of presidential tariff decisions. Collins and Welch have backed measures aimed at restoring congressional authority over major tariff actions.
The latest confrontation threatens to put further strain on the deeply integrated North American economy, where manufacturing, agriculture, energy and transportation supply chains frequently cross the US-Canada border multiple times before finished goods reach consumers.
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