Canada at 'war,' will retaliate after trade talks with U.S fail, Carney says

Prime Minister Mark Carney announced Saturday that Canada is walking away from trade negotiations with the United States after the American side made unacceptable demands that would compromise Canadian sovereignty. The U.S. has implemented 50-percent tariffs on $20 billion in goods, and Canada will respond with matching retaliatory measures effective September 8. Carney stated the negotiations failed over U.S. demands regarding steel, aluminum, autos, and restrictions on Canada's trade with other nations. He emphasized: "There were some things we wouldn't do. We were not prepared to compromise Canada's sovereignty or to undermine key industries." When asked about his combative tone, Carney responded: "You are at war when you get attacked. We got attacked. That's fine. We've got the reserves. We've got resilience. We've got the plan." The negotiations foundered primarily on tariff treatment for mid- and heavy-duty trucks. The U.S. offered to lower auto tariffs from 25 to 15 percent but excluded trucks, affecting major plants like Ford's Oakville facility producing F-Series trucks and GM's Oshawa Silverado production. Ontario Premier Doug Ford backed the decision, saying: "I'm glad he didn't sign that deal because it was a bad deal."