Canada Suspends Trade Talks with US Over Tariff Dispute

By Staff, Agencies

Canada has suspended trade negotiations with the US after Prime Minister Mark Carney said Washington’s latest proposals failed to meet Ottawa’s objectives and threatened the reliability of any potential agreement.

In a statement late Friday, Carney said Canada had worked to secure a fair trade deal that would provide strong access to the US market while giving Canadian businesses and workers greater certainty.

He said negotiators had made meaningful progress toward strengthening Canada’s position and securing what Ottawa viewed as the best possible trade arrangement with the US. However, Carney said the progress was ultimately insufficient.

“As a result, this evening, I have decided to suspend trade negotiations with the US,” Carney said, directing Canada’s negotiating team to return to Ottawa.

Carney said Canadian officials had negotiated “hard, in good faith” and continued defending the country’s interests until the final stages of the talks. He accused Washington of making last-minute changes to its proposed terms that he described as unfair and economically damaging.

The dispute centers on plans by the US to impose a 50% tariff on billions of dollars worth of Canadian goods. Carney said Canada would respond by matching the tariffs dollar for dollar in an effort to protect Canadian workers and businesses.

The negotiations had resumed in Washington on Friday morning as both countries faced a midnight deadline for the new tariffs, covering roughly CAN$30 billion [US$22 billion] in Canadian exports.

The suspension came despite earlier signs of progress. Both sides had indicated that they were nearing an agreement, while US President Donald Trump said Wednesday that a “very fair” deal had been reached.

The latest breakdown now leaves relations between the two major North American trading partners facing renewed uncertainty, with Canada preparing to retaliate against the proposed US tariffs while Ottawa keeps the door open for future negotiations.