By News Desk

OTTAWA / WASHINGTON — Canadian Prime Minister Mark Carney has suspended trade negotiations with the United States and recalled his negotiating team from Washington, declaring that Ottawa will match incoming U.S. duties “dollar for dollar”.

The sudden breakdown in talks triggered a 50% tariff imposed by the Trump administration on roughly $20 billion worth of Canadian imports.

Breakdown in Washington Negotiations

The collapse follows intensive, last-minute talks aimed at resolving disputes over sectoral duties and market access:

• Unacceptable Late Terms: Prime Minister Carney stated that negotiations were halted after Washington introduced last-minute modifications. “Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” Carney declared in a statement.
• Recall to Ottawa: Carney ordered Canada’s lead trade negotiators to immediately end discussions and return to Ottawa.
• Objective Mismatch: The Canadian government maintained that while progress had been achieved, the U.S. offer failed to guarantee broad tariff-free access or adequately protect Canadian small and medium-sized enterprises.

Tariff Escalation and U.S. Response

With no agreement finalized ahead of the deadline, trade restrictions took immediate effect:

• 50% U.S. Duties: The United States invoked Section 338 of the Tariff Act of 1930 to enact 50% tariffs covering approximately $20 billion in Canadian goods.
• Equal Retaliation: Prime Minister Carney confirmed that Canada will enact matching dollar-for-dollar counter-tariffs on U.S. goods to protect Canadian industries and workers.
• U.S. Trade Representative Position: U.S. Trade Representative Jamieson Greer expressed disappointment, characterizing the breakdown as a “missed opportunity” and accusing Canadian officials of walking back earlier verbal commitments.

Political Support and Economic Support

The Canadian government announced it is finalizing targeted relief packages for impacted domestic sectors, while provincial leaders voiced swift backing for the federal response:

• Bipartisan Provincial Backing: Ontario Premier Doug Ford endorsed the Prime Minister’s decision, calling for a unified front and full tariff-for-tariff counter-measures.
• Market Diversification: Carney reiterated that Canada will accelerate efforts to expand trade agreements beyond North America to lessen dependence on the U.S. market.