Canadian PM calls Trump's fresh tariffs a 'miscalculation' after trade talks collapse

Canada's Prime Minister Mark Carney has condemned the recent surge in US tariffs on Canadian goods as a "miscalculation" aimed at causing harm and division. In a speech on Saturday, Carney stated that he withdrew from trade talks due to Canada's unwillingness to compromise its sovereignty. He criticized the US for making "too many demands" and offering "too little."

Canada pledges to match the US tariffs dollar-for-dollar starting September 8, which includes levies on steel, dairy, appliances, and electronics. Both countries were optimistic about a deal earlier in the week, but talks collapsed on Friday night after accusations of last-minute changes from both sides. Canada will now face new 50% US tariffs on a range of goods, along with existing tariffs on steel, aluminium, automobiles, and lumber.

The prime minister said these retaliatory measures are taken reluctantly to protect Canadian interests. The collapse of talks follows a year of intermittent trade discussions, which accelerated after a US deadline to reach an agreement or face further tariffs. The United States and Canada are also involved in a mandatory review of the North American Free Trade Agreement (USMCA), which Mexico formally requested to be renewed for another 16 years.

The US declined to extend the existing agreement in its current form. Carney expressed concern that Friday's trade talk collapse would negatively impact the North American free trade pact, a key component of Trump's trade policy aimed at boosting domestic manufacturing and job creation.