Canadian Prime Minister Mark Carney has described new U.S. tariffs imposed by President Donald Trump as a “miscalculation” after last-minute trade negotiations between Canada and the United States collapsed.
The talks had raised hopes of a broader agreement after both governments reported progress earlier this week. However, negotiations broke down late Friday after Canada objected to changes in the U.S. position that Carney said were unfair and economically damaging.
The United States has now imposed 50% tariffs on a range of Canadian goods, escalating an already tense trade dispute. The new measures affect billions of dollars in Canadian exports, while important sectors such as steel, automobiles, lumber and other strategic industries remain caught in the wider tariff conflict.
In a televised address, Carney said Canada had been negotiating in good faith but was unwilling to accept an agreement that compromised its economic interests or sovereignty. He argued that Washington had “asked too much and offered too little.”
Canada has responded by preparing dollar-for-dollar retaliatory tariffs on selected U.S. products, including steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics. The new Canadian measures are scheduled to take effect after Labour Day.
Carney warned that the dispute could increase costs for consumers and businesses on both sides of the border. However, he said Canada would focus on strengthening domestic industries and diversifying its international trading relationships.
The collapse marks another major deterioration in the traditionally close economic relationship between Canada and the United States. With no immediate new negotiations scheduled, businesses are facing increased uncertainty over supply chains, investment and future market access.
