Canada brought new tariffs on American goods into force, a step that followed trade negotiations between the two countries that failed to produce an agreement.

Covered products and rates were published in advance and apply at customs from the moment of entry into force. Canadian officials said the list could be adjusted in stages.

Where the talks stalled

The negotiations are understood to have failed to narrow differences over rules of origin in specific industries and the treatment of subsidies. Both are tied to the interpretation of existing agreement texts, which makes technical adjustment difficult.

Because North American supply chains send components back and forth across the border several times, tariffs accumulate costs at intermediate stages as well as in final goods.

How companies are responding

Firms with plants on both sides are looking at shifting inventory and adjusting sourcing to cushion the immediate impact, though relocating facilities is a decision measured in months or years.

Consumer prices are expected to respond with a lag, with adjustments typically beginning once distributors' existing stock is used up.

Both governments say the negotiating channel itself remains open. Tariffs and talks proceeding in parallel has been a recurring pattern in recent trade disputes.