For Canada, new U.S. tariffs following the collapse of trade talks will cause short-term economic pain, but Prime Minister Mark Carney appears likely to hold firm, betting that Ottawa's negotiating leverage will grow as Donald Trump becomes a lame-duck president. Carney ordered Canadian trade negotiators to exit talks with the United States on Aug. 21, just hours before a deadline that led Washington to impose 50% tariffs on about $20 billion in Canadian imports. This came after U.S. President Donald Trump, on Aug. 18, forestalled the implementation of the tariffs by three days after saying that the two countries had reached an agreement. In the days since negotiations collapsed, both sides have traded accusations: U.S. officials claim Canada reneged on previously agreed-upon provisions, whereas Canadian officials claim the United States introduced harsher last-minute demands and that its proposed draft deal far exceeded what Ottawa had previously accepted.