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🇳🇬 Nigeria /Economy & Trade

US-Canada Tariff Talks Collapse, Raising Trade War Fears

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Trade negotiations between the U.S. and Canada have collapsed, potentially leading to a new trade war.
  • The U.S. accused Canada of rejecting final deal terms, while Canada cited last-minute changes from Washington.
  • The breakdown could escalate economic confrontation, impacting industries like automobiles and steel.

Trade negotiations between the United States and Canada have collapsed, raising the prospect of a fresh escalation in the trade war between the two North American neighbors. Ottawa rejected what Washington described as the final terms of a deal intended to avert sweeping new tariffs.

Canada rejected the final terms of a deal to avert sweeping new tariffs.

— US officialsDescribing the breakdown of trade negotiations between the U.S. and Canada.

The breakdown occurred late Friday after days of intense negotiations. U.S. officials had indicated progress was being made, but Canada is now threatening retaliatory measures against any new American tariffs. The U.S. Trade Representative, Jamieson Greer, accused Canada of abandoning the process after substantial progress had been made. Greer stated that Ottawa introduced new demands and reversed previous commitments, disrupting a carefully negotiated balance.

Ottawa introduced new demands and reversed some commitments reached during the negotiations, upsetting what he described as a carefully negotiated balance.

— Jamieson GreerThe U.S. Trade Representative accused Canada of changing its position.

Canadian Prime Minister Mark Carney rejected this account, asserting that Washington presented last-minute conditions that were unacceptable to his government. Carney described the American demands as "unfair, uneconomic, and called into question the reliability of any deal." While acknowledging significant progress, he noted that the outcome still fell short of Canada's requirements for protecting its interests.

the last-minute conditions came from Washington and were unacceptable to his government.

— Mark CarneyThe Canadian Prime Minister rejected the U.S. account of the negotiations.

The core dispute involves the scale and scope of proposed American tariffs, with disagreements persisting over sectors such as automobiles, steel, aluminum, and lumber. Despite Washington offering what Greer called the most favorable treatment for any major exporter, the sides could not resolve their differences. The collapse threatens to deepen an already damaging economic confrontation, particularly affecting intertwined economies and supply chains, especially in manufacturing and the automotive industry.

unfair, uneconomic, and called into question the reliability of any deal.

— Mark CarneyThe Prime Minister described the U.S. demands during the trade talks.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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