‘Unfair’: Canada suspends trade talks with US, PM Carney says he will match tariffs ‘dollar for dollar’

Canada has suspended trade negotiations with the United States, Prime Minister Mark Carney said, after last-minute changes to terms proposed by Washington were deemed “unfair” and “uneconomic”, a day after US President Donald Trump said the United States “should be able to reach a deal with Canada”.“Carney said the decision followed recent progress in the talks, but added that it had not been enough to meet Canada’s goals of ensuring tariff-free access for most Canadian businesses, reducing U.S. tariffs in key industries and protecting small and medium-sized businesses.“Over the past 18 months, Canada’s new government has focused on strengthening our domestic strength, diversifying our partnerships abroad and achieving a fair deal with the United States,” Carney said in a statement.In further announcing the decision to suspend negotiations, he added: “In recent weeks, we have made important progress to improve Canada’s position as a country that has the best agreement in the world with the US. However, that progress has not been sufficient to meet our objectives for Canadians. As a result, this afternoon I have decided to suspend trade negotiations with the US and have ordered Canada’s negotiators to return to Ottawa. They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations until the last minute. However, the last-minute changes to the terms proposed by the United States were unfair, uneconomical, and called into question the reliability of any agreement.”This came while the two countries were in negotiations, as the United States will impose a 50 percent tariff on approximately C$28 billion of Canadian goods starting at midnight, according to the Canadian government. Canada will respond with equivalent tariffs “dollar for dollar,” Carney said.He also ordered Canada’s trade negotiators to return to Ottawa, saying the latest U.S. proposals raised questions about the reliability of any potential deal.Carney said Canada would continue its strategy of reducing dependence on the United States by strengthening its domestic economy and expanding trade with other markets. Canada’s existing free trade agreements provide preferential access to 1.5 billion consumers, he said, adding that the government hopes to double that market access by the end of the year.The government will also introduce additional measures to support Canadian workers and businesses, building on nearly C$25 billion in support provided over the past 18 months, Carney said.Meanwhile, U.S. Trade Representative Jamieson Greer slammed Canada for the failure of the talks in a statement read to reporters at a news conference shortly before midnight. “Tonight, Canada refused to finalize the trade deal according to the terms agreed to earlier this week. “Despite the United States’ offer to Canada to receive the best treatment of any major exporter to our market, new demands and rollbacks of other commitments by Canada have upset the careful balance reached in recent days,” he said.This came a day after US President Donald Trump expressed hope for a deal. Speaking to reporters at Joint Base Andrews before departing for Myrtle Beach, South Carolina, Trump was asked about the status of the deal with Canada. He had said: “More or less, I think so, we will see. I have dealt with the Prime Minister, I have a good relationship and yes, we have to take care of our farmers. Our farmers are very important to me and the agreement with Canada is moving forward and we should be able to reach an agreement with Canada.”“