Ottawa, August 22 (TNA) Canadian Prime Minister Mark Carney announced late Friday night that Canada has suspended trade negotiations with the United States, after the two countries failed to reach a deal ahead of a deadline that triggered a fresh round of steep American tariffs on Canadian goods.
Carney said Canada would retaliate by matching the new US tariffs "dollar for dollar," as 50 per cent duties imposed by President Donald Trump's administration took effect at midnight. The new tariffs are set to hit a wide range of Canadian exports, including hockey sticks, certain building materials, liquors and specific categories of clothing.
What Carney Said
In a statement issued late Friday, Carney framed the breakdown in talks against the backdrop of his government's broader strategy over the past 18 months, saying Canada had focused on building strength at home, diversifying its international partnerships, and pursuing what he described as a fair trade deal with the United States. He said Canada's negotiating objectives had centred on preserving tariff-free access to the US market.
With talks now suspended, Carney confirmed that Canada's negotiating team would be returning home from Washington.
No Immediate Response from Washington
The White House and the Office of the US Trade Representative did not immediately respond to requests for comment on the breakdown in talks.
Domestic Pressure on Carney
As negotiations dragged on through the week, Carney's government faced mounting pressure from within Canada. Manitoba Premier Wab Kinew had publicly urged the federal government to take a tougher stance and "fight" Trump. One particular point of friction in the talks had been a request from Carney to provincial premiers to lift their bans on American alcohol sales -a demand that reportedly did not sit well with several provincial leaders.
A Rocky Negotiating History
This is not the first breakdown in US-Canada trade talks under Carney's tenure. Trump had previously terminated negotiations after Ontario's provincial government ran an anti-tariff advertisement featuring former US President Ronald Reagan criticising tariffs — an ad the Ronald Reagan Presidential Foundation said used "selective audio and video" and was examining legal options over. Carney later apologised to Trump over the advertisement, though the US president had said at the time he had no immediate plans to resume talks despite the apology.
Trump has separately accused Canada of attempting to influence the US Supreme Court, which is due to hear arguments next month on the legality of his sweeping global tariff regime. With trade talks now suspended once again and retaliatory tariffs set to take effect on both sides, the standoff marks a fresh setback in what has been a turbulent trade relationship between the two North American neighbours through much of 2026.