‘Cannot accept what was offered’: Canadian PM Mark Carney on why US trade deal didn't work

Canada's Prime Minister Mark Carney has denounced the latest batch of US tariffs on Canadian goods as a "miscalculation" aimed at harming their nation, following the collapse of trade negotiations on Friday. Carney stated that he refused to compromise Canada's sovereignty during talks, as the Americans made excessive demands and offered insufficient concessions.

Speaking to Canadians on Saturday, Carney announced Canada's decision to impose a dollar-for-dollar response on US tariffs, effective from September 8, covering sectors such as steel, dairy, appliances, and electronics. The collapse of trade talks occurred after both parties accused each other of making last-minute changes. As a result, Canada will face new 50% US tariffs on various Canadian products, alongside existing tariffs on steel, aluminum, automobiles, and lumber.

Carney admitted that these retaliatory measures were enacted reluctantly to safeguard Canada's interests. The speech marked his first address to Canadians since announcing the failure of negotiations earlier that day, accusing the Americans of making "last-minute changes" that were "unfair" and "uneconomic." US negotiators countered by alleging that Canada had introduced "new demands and walkbacks" on previously agreed terms.

The trade dispute follows a year-long series of on-again, off-again talks, which intensified after a US-imposed deadline forced the countries to either reach an agreement or face additional tariffs. The two nations were also negotiating the renewal of the USMCA trade agreement with Mexico, a process Canada and Mexico formally requested for a 16-year extension earlier in the summer.

The US, however, declined to renew the accord in its current form. In response to the trade talks' collapse, Carney expressed that it was "certainly not good news" for the North American free trade pact. Tariffs have been a cornerstone of Trump's trade strategy, with the president claiming they would stimulate American manufacturing and generate domestic employment.

However, critics argue that tariffs have inflated consumer prices and destabilized the global economy.