New Delhi, Aug. 22 -- The United States is set to impose 50 per cent tariffs on $20 billion worth of Canadian imports after the two long-standing allies failed to reach a deal at the last minute.

The new tariffs will come into effect at 12:01 am on Saturday (local time) on hundreds of items that Washington imports from Ottawa, including plywood, liquor, electrical equipment and hockey gear, Bloomberg reported.

The failure to reach a deal has once again heightened tensions between the two longtime allies, which recorded nearly $900 billion in trade in goods and services last year. Beyond the tariff dispute, President Donald Trump has repeatedly floated the idea of making Canada a US state, called its prime ministers "governors," and said...