‘Cannot accept what US has offered’: Canada PM Carney defiant as trade talks collapse

Canadian Prime Minister Mark Carney has vehemently rejected the most recent offer made by the United States during trade negotiations between the two nations, which have now failed to reach a resolution. In a statement, Carney announced that Ottawa will retaliate with new tariffs targeting industries such as steel and dairy, set to take effect on September 8th.

Carney expressed Canada's unwillingness to accept the US trade proposal, stating emphatically, "We cannot accept what the US has offered and we will not give what they’ve asked." He further explained that Canada had been prepared to dismantle its remaining retaliatory tariffs on strategic US sectors, particularly steel, aluminium, and automobiles, as part of a larger agreement, but was not prepared to compromise in areas vital to the Canadian economy.

The breakdown in negotiations came after the United States imposed 50% tariffs on approximately $20 billion worth of Canadian products early Saturday. These tariffs affect roughly 5% of Canada's annual exports to the US, encompassing a diverse range of goods. Canada has responded accordingly, preparing matching tariffs to safeguard its workers and businesses, according to Carney.

Details of the new retaliatory measures are expected to be released in the coming days, with the anticipated impact primarily focusing on sectors like steel and dairy. The US and Canada had been striving for a compromise, with Washington extending the deadline for the tariffs to facilitate further discussions. However, the talks collapsed following what Carney characterized as last-minute changes to the US proposal that were deemed unfair and economically unjustified.

Carney cited the US proposal as "last-minute changes" that were deemed "unfair, uneconomic, and called into question the reliability of any deal." In response, he suspended negotiations and ordered Canada's negotiating team to return to Ottawa. The US Trade Representative Jamieson Greer, however, accused Canada of the collapse, claiming that Ottawa had refused to finalize a deal despite receiving favorable treatment.

Carney emphasized that Canada's primary objective was never to secure any deal at any cost or deadline. He also affirmed that Ottawa did not believe the US was genuinely interested in curtailing Canada's energy supplies. This escalation in trade tensions is likely to further strain relations between the two long-standing allies and could complicate efforts to re-negotiate the US-Mexico-Canada trade agreement.

Carney has warned that Canada has acknowledged that "America has changed" and that the two countries will not revert to their previous relationship.