Canadian Broadcasting Corporation is reporting that trade negotiations between Canada and the United States collapsed late Friday night, leading to the imposition of new U.S. tariffs on $28 billion worth of Canadian goods. Prime Minister Mark Carney announced Canada would implement dollar-for-dollar counter-tariffs after Labour Day, targeting key U.S. sectors such as steel, dairy, appliances, pulp and paper, and electronics.
The CBC said Carney told reporters Saturday that Canada was willing to drop remaining retaliatory tariffs on strategic sectors if the U.S. substantially lowered its tariffs to economically viable levels for Canadian exporters. However, Carney stated U.S. negotiators "asked too much and offered too little," proposing terms that were "uneconomic, unfair and undermined the net benefits to Canada." He cited U.S. attempts to restrict Canada's ability to strike trade deals with other countries and impose limitations on Canada's protections of its languages, culture and sovereignty.
U.S. Trade Representative Jamieson Greer, in his own statement, said talks crumbled because Canada did not accept the administration's proposed agreement and tried to introduce last-minute demands. He did not specify those demands.
The CBC reported that President Donald Trump has now imposed 50 percent tariffs on Canadian goods. Carney said Canada takes this step "reluctantly" but will support Canadian businesses affected by the dispute. Federal political leaders and provincial premiers, including Ontario Premier Doug Ford, urged unity against the U.S. tariffs. California Gov. Gavin Newsom, a Democrat, expressed exasperation on social media over Trump's actions. Canadian business groups, such as the Canadian Chamber of Commerce, voiced deep concern about the economic impact.
The CBC also learned that U.S. Commerce Secretary Howard Lutnick had expressed dissatisfaction with the trade deal on the table, believing the U.S. could secure a better agreement. Sources indicated Lutnick particularly opposed lowering tariffs on Canada-made automobiles from 25 percent to 15 percent, fearing it would undermine domestic production efforts.