Inside the 72 hours that cratered the US-Canada trade deal

U.S. Trade Representative Jamieson Greer and Canadian officials were in the midst of intense negotiations just hours before a deal seemed within reach. For over a week, the two nations had agreed on the overall framework, with industry groups and stakeholders briefed. However, late in the talks, new demands from Canada, particularly seeking lower tariffs on heavy trucks, proved to be the deal-breaker.

Canadian Prime Minister Mark Carney pointed the finger at internal conflicts within the U.S. administration, while U.S. officials accused Canada of introducing last-minute demands. The result was a swift escalation into a trade war, with a 50 percent tariff on $20 billion worth of Canadian goods taking effect on Saturday. Both countries have vowed retaliation, and Mexico, a key trading partner for both nations, could also be affected.

The talks exposed deep divisions between the two administrations, with Canadian officials alleging disunity within the U.S. side. While the White House maintains unity between Greer and Commerce Secretary Howard Lutnick, Lutnick felt he was being "sprung" the deal without adequate consultation. The breakdown of negotiations could have significant economic repercussions, threatening $1 trillion in North American trade and potentially prolonging economic pressure ahead of U.S. congressional elections.