US-Canada Trade Talks Break Down as Carney Promises Matching Tariffs

A fresh wave of US tariffs on Canadian goods has taken effect after last-minute trade negotiations between Ottawa and Washington broke down.

Canadian Prime Minister Mark Carney announced the suspension of talks shortly before Friday night’s deadline, saying Canada would respond with reciprocal tariffs on US goods “dollar for dollar.”

Trade Talks Collapse

Carney said negotiators had made important progress during weeks of discussions but failed to reach an agreement that met Canada’s objectives.

He said last-minute changes to the terms proposed by the United States were “unfair” and “uneconomic”, while also raising concerns about the reliability of any potential trade agreement.

“As a result, this evening, I have decided to suspend trade negotiations with the US and have directed negotiators to return to Ottawa,” Carney said.

Trump Had Paused Tariffs

The breakdown follows weeks of intense negotiations that began in July after US President Donald Trump threatened to impose a 50% tariff on nearly $20 billion in Canadian imports.

Trump had temporarily paused the planned tariffs earlier in the week, saying the two countries were close to reaching a trade agreement that he described as beneficial to both sides.

However, the negotiations failed to produce a deal before the latest deadline.

Canada Prepares Retaliation

Carney said Canada would impose reciprocal tariffs on US products in response to the new American measures.

The move threatens to further increase tensions between two of the world’s closely integrated trading partners, with businesses and consumers on both sides facing the possibility of higher costs.

The Canadian government has indicated that it remains prepared to negotiate, but Carney’s decision to suspend talks signals that Ottawa will not accept what it considers an economically damaging or unreliable agreement.

The latest escalation could put additional pressure on both governments to find a way back to the negotiating table and prevent a prolonged trade dispute.