Canada Suspends U.S. Trade Talks, Signals Retaliatory Tariffs Following Disputed Final Terms

Canadian Prime Minister Mark Carney announced late Friday that his government has suspended trade negotiations with the United States. Carney blamed “unfair” last‑minute changes introduced by Washington to its proposed terms, calling them “uneconomic” and raising questions about the reliability of any agreement. In response, Canada will impose retaliatory tariffs that match the U.S. measures.

The decision follows President Donald Trump’s announcement that a 50 % tariff on roughly $28 billion of Canadian goods would take effect at midnight. The duties were part of a broader package targeting imports such as liquor, dairy, vehicles, hockey equipment, and other goods.

The breakdown came after Trump had paused the levies for three days, suggesting that the U.S. and Canada had reached a “deal!” subject to final documentation. Although Carney noted that progress had been made in recent weeks toward improving Canada’s position, the two sides were ultimately unable to finalize an agreement.

TRUMP PAUSES 50% TARIFFS ON CANADA HOURS BEFORE DEADLINE AFTER ANNOUNCING POTENTIAL DEAL

Canadian Prime Minister Mark Carney greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders’ Summit on June 16, 2025, in Kananaskis, Alberta.  (Chip Somodevilla/Getty Images / Getty Images)

Carney emphasized that the advances made during the talks did not meet Canada’s core objectives. “However, that progress has not been enough to meet our objectives for Canadians,” he stated. He further explained that the suspension was ordered after “last‑minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” Carney continued. “They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute.”

The Office of the U.S. Trade Representative (USTR) offered a contrasting view, asserting that Canada declined to finalize terms that had been agreed earlier in the week. “Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week,” USTR Jamieson Greer said. “Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days.”

Greer highlighted that the United States had proposed significant tariff reductions on steel, aluminum, autos, and lumber, alongside a broader economic and national‑security partnership covering digital trade, critical minerals, aerospace, and export controls. “This is a missed opportunity for Canada to partner with the United States, which is the fastest growing economy in the G7,” Greer remarked.

Carney confirmed that Canada would retaliate on a dollar‑for‑dollar basis, matching the 50 % U.S. tariffs on roughly $28 billion of goods. “At midnight tonight, the U.S. intends to impose a 50 % tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses,” he said. He added that additional support measures, building on nearly $25 billion already provided over the past 18 months, would be introduced in the coming days.

US, CANADA STRIKE DEAL TO OPEN BRIDGE LINKING DETROIT AND WINDSOR AFTER DISPUTE DELAYED LAUNCH

President Donald Trump meets with Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)

Trump indicated late Tuesday that he was pausing the new tariffs on Canadian goods originally slated to take effect the following day. The proposed duties would have covered about $20 billion in imports, encompassing a wide range of products from liquor and dairy to vehicles, hockey equipment, wearables, synthetic materials, and industrial goods.

The Trump administration first announced the tariffs in June, citing what officials described as trade “discrimination” against American businesses. This decision has added a new layer of tension to the ongoing negotiations.

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