- Canada's prime minister, Mark Carney, is preparing a response to fresh US tariffs after trade talks collapsed, and confirmed he would match Trump's tariffs "dollar-for-dollar" from 8 September, including levies on steel, dairy, appliances and electronics.
- Minutes before the Friday deadline, Carney ended the negotiations, saying the US's proposed terms "were unfair, uneconomic, and called into question the reliability of any deal"; Trump then imposed the 50% tariff on some Canadian exports, and Carney said he would match that "dollar for dollar" on US exports.
- US and Canadian trade have been strained since July, after Trump threatened to impose a 50% levy on nearly $20bn of Canadian imports by 19 August; he had temporarily paused those tariffs last week, saying the two sides were close to signing a trade deal that was "very good" for both countries.
- Negotiators were reportedly discussing a deal that would reduce US tariffs on Canadian steel and aluminium from 50% to 25%, and on Canadian autos from 25% to 15%; in exchange, Carney had asked Canadian provinces to restore US alcohol to store shelves.
- Carney is expected to speak at 1230 EST today.
- Both countries were optimistic of a deal last week, but talks fell apart after each accused the other of making last-minute changes; Carney said, "They asked too much and they offered too little".
- Chief US trade negotiator Jamieson Greer downplayed the significance of the failed talks, calling it a "tempest in a teapot".
Canada is bracing for a trade escalation as Prime Minister Mark Carney prepares to implement a reciprocal 50% tariff on US goods starting September 8. This decision follows the collapse of trade negotiations, which had initially sparked optimism for a resolution.1234
President Trump had threatened to impose new tariffs on Canadian vehicles, increasing existing levies from 25% to 50% on January 1. Carney's response includes matching these tariffs "dollar-for-dollar" on various products, including steel, dairy, and electronics.
“They asked too much and they offered too little,” Carney remarked, reflecting on the failed negotiations. The talks, which had aimed to reduce US tariffs on Canadian steel and aluminum, fell apart just before the deadline, with Carney labeling the US terms as "unfair, uneconomic, and called into question the reliability of any deal."
Despite the setback, Chief US trade negotiator Jamieson Greer downplayed the situation, calling it a “tempest in a teapot.” The trade relationship between the two countries has been strained since Trump threatened tariffs on nearly $20 billion (C$28 billion; £14 billion) of Canadian imports in August, which he temporarily paused, citing progress in negotiations.12
As tensions rise, Carney is expected to address the media at 12:30 EST today, potentially outlining further details of Canada's trade strategy moving forward.
“Carney ended negotiations minutes before the Friday deadline, calling US terms 'unfair, uneconomic, and called into question the reliability of any deal'. Chief US negotiator Jamieson Greer downplayed the failure as a 'tempest in a teapot', while Carney is set to speak at 1230 EST today.”
