Ottawa: Canada has suspended trade negotiations with the United States after talks between the two countries collapsed, with Prime Minister Mark Carney accusing Washington of putting forward terms that were “uneconomic, unfair” and damaging to Canada’s interests.
Carney said he had ordered Canadian negotiators to return to Ottawa after the US introduced new demands during the final stages of negotiations. Canada has also announced plans to retaliate against the latest American tariffs on a “dollar-for-dollar” basis.
Why Did Canada Suspend Trade Talks With US?
Carney said Ottawa believed negotiations were moving towards a mutually beneficial agreement before Washington introduced new conditions.
“They asked too much, and they offered too little,” Carney said, arguing that the proposals raised questions about the reliability of any future agreement.
Among Canada’s major concerns was an alleged attempt by Washington to restrict Ottawa’s ability to independently negotiate trade agreements with other countries.
Carney rejected such conditions, stressing that Canada would retain control over its international commercial relationships.
“We’re a proud independent country,” he said, adding that Canada would decide for itself which countries it trades with and on what terms.
US Imposes 50% Tariff On Canadian Imports
The breakdown in negotiations was followed by the United States imposing a 50 per cent tariff on nearly USD 28 billion worth of Canadian imports.
The duties took effect at 12:01 am ET and reportedly cover products ranging from cement to hockey sticks. The affected goods represent around 5.5 per cent of Canada’s total exports to the US.
US Trade Representative Jamieson Greer said Washington had offered significant reductions in tariffs covering steel, aluminium, automobiles and lumber if Canada agreed to reciprocal concessions.
The White House has also accused Canada of discriminatory treatment of American dairy, automobile and alcohol products.
Canada Announces ‘Dollar-For-Dollar’ Response
Carney said Canada would respond to the new US measures with matching tariffs to protect Canadian workers, farmers, families and businesses.
“Canada will match the U.S.’ new tariffs dollar for dollar,” he said.
Ottawa’s retaliatory measures are expected to specifically target American dairy and steel exports, with the new Canadian duties scheduled to take effect on September 8.
The move risks further escalating a trade dispute between two economies that have historically shared one of the world’s closest commercial relationships.
Canada Draws Red Line Over Independent Trade Deals
One of the sharpest disagreements appears to have emerged over Canada’s freedom to pursue trade agreements beyond North America.
Carney said Canada had secured 20 new economic and security partnerships over the past year and intended to continue expanding its global market access.
He said any provision allowing Washington to restrict Canada’s ability to negotiate such agreements was unacceptable.
The Canadian Prime Minister’s remarks came despite US President Donald Trump suggesting that an agreement could still be reached, citing his relationship with Carney.
For now, however, negotiations remain suspended, with Ottawa preparing retaliatory tariffs and both sides showing little sign of backing down from their respective positions.
