The United States imposed 50% tariffs on roughly $20 billion worth of Canadian goods early Saturday after last-minute trade negotiations with Canada broke down, prompting Canadian Prime Minister Mark Carney to suspend talks and pledge dollar-for-dollar retaliation.

The new levies took effect at 12:01 a.m. ET and cover a range of products including plywood, cement, wine, dairy, clothing, electronics, and hockey equipment—about 5% of Canadian exports to the U.S. They come on top of existing tariffs on Canadian steel, aluminum, autos, and lumber. Key natural resources such as oil, potash, and critical minerals are exempt.

Carney said “last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.” He directed Canadian negotiators to return to Ottawa and announced that Canada would match the tariffs “dollar for dollar to protect our workers and businesses.” Retaliatory measures targeting sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics are set to take effect September 8.

U.S. Trade Representative Jamieson Greer blamed Canada, saying it “declined to finalize the trade deal under the terms agreed earlier this week” and had introduced new demands while walking back other commitments. He noted the U.S. had offered Canada the best treatment of any major exporter, including significant tariff reductions on steel, aluminum, autos, and lumber.

President Trump had paused the tariffs earlier in the week, saying the sides were close to a deal, but the agreement collapsed hours before the deadline. No further talks are currently planned.