Canada has halted its bilateral trade negotiations with the United States. Canadian Prime Minister Mark Carney made it clear that the last-minute changes to the terms proposed by Washington are unfair and economically harmful.
This decision came shortly after U.S. President Donald Trump said that the United States should reach a deal with Canada.
Canada Suspends U.S. Trade Talks as PM Carney Says Key Objectives Remain Unmet
According to Prime Minister Carney, despite progress in recent negotiations, Canada’s key objectives were not being achieved. These priorities included securing tariff-free access for Canadian businesses, reducing U.S. tariffs on major industries, and ensuring protection for small and medium-sized businesses.
In a statement, Carney said that over the past 18 months, Canada’s new government has focused on strengthening the domestic economy, diversifying global partnerships, and securing a fair deal with the United States.
In recent weeks, we have made significant progress toward strengthening Canadian interests, but it was not enough to meet the goals of Canadians.
Consequently, I have decided to suspend the trade negotiations and instructed our negotiators to return to Ottawa. The U.S. proposals have raised questions about the credibility of any potential agreement.
Why Were the Talks with the United States Suspended?
According to Mark Carney, there had been progress in talks between the two countries over the past few weeks. However, Canada was not in a position to achieve its key objectives.
Canada wanted most Canadian businesses to have tariff-free access to the U.S. market, lower U.S. tariffs on major industries, and greater protection for small and medium-sized businesses.
Carney said that last-minute changes to the proposed terms by the United States had also raised questions about the credibility of any potential agreement.
Canada to Respond to U.S. Tariffs of 50%
According to the Canadian government, the United States is set to impose a 50% tariff on Canadian goods worth approximately C$28 billion starting at midnight. In response, Canada will impose equivalent tariffs on U.S. goods. Carney said Canada would respond to U.S. tariffs on a “dollar-for-dollar” basis.
Carney emphasized that Canada would reduce its dependence on the United States by expanding trade with other global markets. Currently, Canada’s free trade agreements provide access to 1.5 billion consumers, and the goal is to double that figure by the end of the year.
Additionally, the Canadian government will introduce further measures to support Canadian workers and businesses, building on the C$25 billion in assistance provided over the past 18 months.
Carney has Instructed Canada’s Trade Negotiators to Return to Ottawa
Carney has instructed Canada’s trade negotiators to return to Ottawa. He said the negotiators had worked diligently throughout the talks to protect the interests of Canadians, but that the last-minute changes to the terms proposed by the United States were unfair and economically unviable.
Focus on Expanding Trade with Other Countries
Carney said that Canada would move forward with a strategy to reduce its dependence on the United States. This would involve strengthening the domestic economy and expanding trade with other markets. He said that Canada’s existing free trade agreements currently provide preferential access to around 1.5 billion consumers. The government hopes to double that market access by the end of the year.
The Canadian government will also take additional steps to support its workers and businesses. According to Carney, around C$25 billion in assistance has already been provided over the past 18 months.
U.S. Accuses Canada of Backtracking on Trade Deal
U.S. Trade Representative Jamieson Greer also criticized Canada over the breakdown in negotiations. He said that Canada had refused to finalize the trade agreement based on the terms agreed upon earlier this week.
According to Greer, the United States had offered Canada better trading terms than those offered to any other major exporter to the U.S. market. However, Canada’s new demands and its decision to back away from some commitments disrupted the balance of the agreement reached in recent days.
Trump Had Expressed Hope for a Deal Just a Day Earlier
U.S. President Donald Trump had given positive signals about reaching a deal with Canada just a day earlier. Speaking to reporters before departing Joint Base Andrews for Myrtle Beach, South Carolina, Trump was asked about the status of a potential deal with Canada.
Trump had said that he believed a deal could be reached. He also mentioned his good relationship with the Canadian prime minister and said that the agreement between the two countries was moving forward.
