Canada abandons US trade talks, vowing retaliatory tariffs

Canada walked out of trade negotiations with the US just hours before 50% tariffs on Canadian exports were set to take effect, with Prime Minister Mark Carney vowing to respond with dollar-for-dollar tariffs starting 8 September. Carney described the last-minute US demands as 'uneconomic' and said they cast doubt on the reliability of any agreement. Canadian officials cited unresolved issues over autos, digital and cultural policy, as well as US attempts to veto Canada's trade alliances with other countries.

The breakdown came just hours before 50% tariffs on Canadian exports were set to take effect. Ambassador Mark Wiseman indicated no single issue derailed the talks, but rather accumulated discrepancies between the negotiated text and Canadian understanding, spanning auto tariffs, digital and cultural policy, and US demands for veto power over Canada's external trade alliances.

Carney framed the rupture as an attack, citing the US's history of unilateral tariff actions, including moves made as recently as that week. He suggested US signatures on agreements carry little weight, describing them as "written in pencil." Public opinion appears to back the prime minister's hardline stance despite anticipated economic costs.