Trade rift widens as Trump and Carney exchange barbs over tariffs
Negotiations between the US and Canada collapsed on Friday, triggering new 50-percent US tariffs on about $20 billion worth of Canadian goods. Canadian Prime Minister Mark Carney announced retaliatory tariffs targeting US steel and dairy, set to take effect September 8. President Trump responded on Sunday, accusing Canada of seeking state benefits without being a state, deepening the dispute between the longtime allies.
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The collapsed talks followed a three-day reprieve Trump granted after earlier progress reports. US Trade Representative Jamieson Greer said Washington's offer included reduced tariffs on steel, aluminum, and autos, plus elimination of a lumber tariff, which he described as the most preferential treatment offered to any trading partner. He confirmed no new negotiations are scheduled.
Carney cited last-minute US demands restricting Canadian trade agreements with other countries, along with threats targeting French language protections and Quebec culture, as deal-breakers. The new Canadian tariffs on US steel and dairy take effect September 8, with further details expected next week. A senior US official described the talks