Prime Minister Mark Carney said last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal. He stated that important progress had been made in the talks but it was “not enough to meet our objectives for Canadians”. Carney said: “As a result, this evening, I have decided to suspend trade negotiations with the US and have directed negotiators to return to Ottawa.”
According to the BBC, Carney indicated Canada will impose reciprocal tariffs on US goods “dollar for dollar”. The announcement came shortly before the Friday night deadline, he said. A fresh wave of US tariffs on a wide array of Canadian goods came into effect on Saturday after the talks broke down, reports stated.
President Donald Trump had threatened to impose a 50 percent levy on nearly $20 billion of Canadian imports by 19 August. Trump temporarily paused those tariffs earlier in the week and said the two sides were close to signing a trade deal that was “very good” for both countries.
US trade representative and Canadian officials describe why the negotiations ended
US trade representative Jamieson Greer said in a statement: “Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week.” He stated that despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days.
Negotiators were reportedly discussing a deal that would reduce US tariffs on Canadian steel and aluminum from 50 percent to 25 percent, and on Canadian autos from 25 percent to 15 percent. The US Chamber of Commerce warned of economic damage, as the trade dispute has escalated with new tariffs on every country.
In exchange, Carney had asked Canadian provinces to restore US alcohol to store shelves, reports of the talks indicated. The dispute has expanded beyond trade goods to include environmental accusations, as when Trump claimed Canada poisoned US air with wildfires and threatened more tariffs.
Tensions have been present since Trump returned to office in January last year and unleashed a wide-ranging global program of tariffs, the reports stated. Canada is now set to face new 50 percent US tariffs imposed under the Tariff Act of 1930. They apply to a range of goods, including wine, dairy, cement, clothing, and hockey equipment, in addition to existing tariffs on steel, aluminum, autos, and lumber.
Ontario Premier Doug Ford said, “The prime minister has my full support for a strong response – tariff for tariff, dollar for dollar,” following Carney’s announcement. The US Chamber of Commerce said earlier in the week that “higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement”.
A recent poll by Canadian firm Abacus Data suggested that around 36 percent of Canadians would support retaliating against US tariffs, while another 30 percent would want the Carney government to continue negotiating. Greer said the US is “not going to tolerate” counter-tariffs and stated, “We’ll take action.”
Published: Aug 22, 2026 08:30 am