Canada Halts US Trade Talks Over Last-Minute Unfair Terms
Canada abruptly ended negotiations with the United States after Washington introduced last-minute changes that Prime Minister Mark Carney called unfair and uneconomic, sending the trade team back to Ottawa.
After three days of intensive bargaining in Washington, Canada halted trade talks with the United States, accusing the latest American terms of being unfair and uneconomic. Prime Minister Mark Carney ordered negotiators to return to Ottawa, despite President Donald Trump’s earlier remarks that the agreement was moving forward. The stalled discussions had made headway on cutting U.S. tariffs on Canadian-built vehicles from 25% to 15% and reducing duties on steel and aluminium, but the United States insisted Canada remove what it calls discriminatory barriers to American goods, including restrictions on alcohol, dairy and vehicles.
With a tariff deadline approaching, the U.S. plans to levy 50% duties on about $28 billion of Canadian imports, prompting Canada to promise a dollar-for-dollar retaliatory tariff regime and new measures to protect domestic firms. Carney emphasized the need to preserve tariff-free access for most Canadian businesses, protect SMEs, and maintain economic independence from the United States. The impasse threatens to disrupt supply chains across North America, where bilateral trade totals roughly $880 billion annually.
Why it matters
The dispute could trigger steep tariffs on billions of dollars in trade, hurting businesses and consumers on both sides of the border.
How this story developed
- Aug 11 Canadian trade minister meets U.S. counterpart again as tariff deadline looms
- Aug 13 Ontario Premier Doug Ford said his province would allow U.S. alcoholic drinks back on shelves only if a trade agreement safeguards sectors like steel, autos and agriculture.
- Aug 17 Canadian trade officials, including Dominic LeBlanc and Janice Charette, are meeting U.S. counterparts in Washington to avoid the tariffs. President Donald Trump has threatened a 50% levy on items ranging from alcohol to hockey sticks, invoking Section 338 of the Smoot-Hawley Act. Canada also seeks relief from Section 232 duties on autos, lumber, steel and aluminum. The U.S. Chamber of Commerce warned that higher tariffs would harm both economies, while the Canadian Labour Congress urged a fair agreement for workers.
- Aug 18 Prime Minister Mark Carney said he will speak with President Trump before the tariff deadline.
- Aug 19 Trump announced a three‑day suspension of the 50% tariffs on Canadian goods.
- Aug 20 The tariff suspension was extended to remain in place through the end of Aug. 21.
- Aug 20 A trade agreement was reached to suspend the threatened 50% tariffs, with terms not made public.
- Aug 22 A second day of talks was held in Washington as the Saturday tariff deadline loomed.
- Aug 22 The United States moved from pausing the tariffs to announcing they will be imposed after the talks failed.
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