Canada Suspends Trade Talks with US, Imposes Retaliatory Tariffs

Trade negotiations between the United States and Canada collapsed late Friday, leading to immediate retaliatory tariffs. At 12:01 a.m. ET, the U.S. imposed a 50% tariff on nearly $28 billion worth of Canadian imports.

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We have recognised from the beginning that America has changed, and that we will not return to our old relationship.

Prime Minister Mark Carney immediately recalled Canadian negotiators to Ottawa, denouncing Washington's last-minute demands as "unfair and uneconomic." In a statement on X, Carney declared that Canada would match the U.S. levies dollar-for-dollar to protect its workers and businesses. "We have recognised from the beginning that America has changed, and that we will not return to our old relationship," he stated.

Carney explained that while significant progress had been made, it wasn't enough to meet Ottawa's objectives. "As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa," he said. He added that last-minute changes in the U.S. proposed terms were unfair, uneconomic, and questioned the reliability of any deal.

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As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa.

Canada plans to introduce additional measures to support its workers and businesses, building on nearly $25 billion in aid provided over the past 18 months. The Prime Minister highlighted Canada's broader economic strategy, which focuses on strengthening the domestic economy and diversifying partnerships abroad. This includes nearly $500 billion in major infrastructure projects and efforts to unlock new export markets.

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However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.

Carney asserted that Canada's economic growth is accelerating, with the country on track for the second-fastest growth in the G7 over the next two years. He claimed that Canada's economy is creating jobs at four times the rate of the United States and that exports to non-U.S. markets are set to double over the next decade.

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Canada would "match those tariffs dollar for dollar" to protect its workers and businesses.