Lagatar24 Desk
Washington: The United States and Canada saw their intensive three-day trade negotiations collapse, with Washington describing it as a “missed opportunity” after Ottawa suspended talks and ordered its negotiating team home, even as the US imposed 50 percent tariffs on Canadian goods.
US Trade Representative Blames Canada for Deal Collapse
US Trade Representative Jamieson Greer said Canada had declined to finalize a deal despite what he described as an American offer to give Canada the best treatment of any major exporter to the US market, alleging that new Canadian demands and reversals on earlier commitments had disrupted the balance reached during negotiations. Greer noted that Canada had long enjoyed the most favourable access to the US market of any country, and that Washington had offered even better terms this week, including significant tariff reductions on steel, aluminium, autos and lumber, alongside a broader economic and national security partnership covering export controls, digital trade and supply chain coordination.
Carney Calls US Proposal ‘Unfair’, Suspends Talks
Canadian Prime Minister Mark Carney said he had suspended the negotiations and directed Canada’s team to return to Ottawa after last-minute changes to the US proposal were deemed unfair and uneconomic. The US subsequently imposed 50 percent tariffs on roughly $20 billion worth of Canadian products early Saturday, prompting Carney to vow that Canada would match the tariffs “dollar for dollar” to protect Canadian workers and businesses.
Breakdown Marks Sharp Reversal from Earlier Optimism
The collapse represents a stark reversal from just two days earlier, when officials from both countries had appeared close to reaching a compromise, with President Trump having extended the tariff deadline by three days to allow talks to continue. No further negotiations have been scheduled, raising fresh uncertainty over the future of the US-Mexico-Canada Agreement (USMCA), which underpins trade across deeply integrated North American supply chains.
Rift Marks Significant Deterioration in US-Canada Relations
The rupture marks a notable deterioration in relations between the two historic allies, who traded roughly $880 billion in goods and services last year, with nearly 72 percent of Canada’s goods exports destined for the US. Carney said Canada had come to recognise that “America has changed” and that the two nations would not return to their old relationship, adding that Ottawa would instead focus on strengthening its domestic economy and diversifying its trade partnerships going forward.
