Canada-US Trade War: Canada has suspended bilateral trade talks with the United States, with Prime Minister Mark Carney saying recent changes proposed by Washington were unfair and economically damaging.
The decision came shortly after US President Donald Trump expressed hope that a trade deal with Canada could still be reached.
Why Did Canada Halt the Talks?
Carney said that despite progress in recent negotiations, Canada had not achieved its key objectives. These include:
- Tariff-free access for Canadian businesses
- Lower US tariffs on major industries
- Greater protection for small and medium-sized businesses
Carney said Canada had made significant progress in strengthening its domestic economy and diversifying international trade partnerships. However, he concluded that the latest US proposals were not enough to secure a fair agreement.
He has now ordered Canadian negotiators to return to Ottawa.
Canada Announces Tariff Retaliation
Canada’s decision came as the US prepared to impose 50% tariffs on around C$28 billion worth of Canadian goods.
Carney said Canada would respond with “dollar-for-dollar” tariffs, matching the US measures.
The Canadian government also plans to reduce its dependence on the US by expanding trade with other global markets. Canada currently has free-trade agreements covering around 1.5 billion consumers and aims to double that reach by the end of the year.
Additional support will also be provided to Canadian workers and businesses, building on around C$25 billion in assistance announced over the past 18 months.
US Trade Representative Criticises Canada
US Trade Representative Jamieson Greer criticised Canada’s decision, saying Ottawa had refused to finalise an agreement based on terms discussed earlier in the week.
Greer said the US had offered Canada favourable access to its market, but claimed that Canada’s new demands and changes to earlier commitments disrupted the negotiations.
What Did Trump Say?
The latest development came shortly after Trump expressed optimism about reaching an agreement with Canada.
Speaking to reporters before leaving for Myrtle Beach, South Carolina, Trump said his relationship with Carney was good and that negotiations were progressing.
Trump also stressed the importance of protecting American farmers, saying he believed the US and Canada should be able to reach a deal.
