Canada fires back as Carney walks away from Trump trade deal

Canada has dramatically hardened its stance towards the United States after Prime Minister Mark Carney suspended trade negotiations with Washington just minutes before a deadline, declaring that Canada would respond to US tariffs “dollar for dollar.”

The breakdown came after weeks of intense negotiations aimed at preventing a new wave of US tariffs on Canadian goods. Earlier in the week, President Donald Trump had paused the threatened measures and suggested that the two countries were close to a trade agreement that could be “very good” for both sides.

That optimism has now evaporated.

Carney rejects last-minute US demands

Carney said negotiations had produced “important progress” but had ultimately failed to meet Canada’s objectives.

He accused Washington of making last-minute changes to its proposed terms that were “unfair” and “uneconomic”, while warning that they raised questions about the reliability of any eventual agreement.

US Trade Representative Jamieson Greer offered a sharply different account, accusing Canada of refusing to finalise a deal after Washington had offered it preferential treatment. Greer said new Canadian demands and reversals had upset the balance reached during the negotiations.

The collapse means Trump’s threatened 50% tariffs on a broad range of Canadian products are now set to hit, including wine, dairy, cement, clothing and hockey equipment.

Those measures come on top of existing US tariffs covering Canadian steel, aluminium, automobiles and lumber.

Canada promises retaliation

Carney has now made clear that Canada will not simply absorb the new American tariffs.

He said Ottawa would impose reciprocal tariffs on US goods “dollar for dollar”, a position immediately backed by Doug Ford, the premier of Ontario and one of Canada's most outspoken political figures.

Ford declared that Carney had his full support for a response based on “tariff for tariff, dollar for dollar.”

That could turn the dispute into another major escalation between two countries whose economies and supply chains are deeply intertwined.

A deal that appeared within reach

Only days ago, negotiators were reportedly discussing significant reductions in some of the most damaging US tariffs.

Under the emerging proposal, American tariffs on Canadian steel and aluminium could have fallen from 50% to 25%, while tariffs on Canadian automobiles could have been reduced from 25% to 15%.

In return, Canada was being pressed to make concessions of its own, including greater access for American dairy products and the removal of restrictions on US alcohol sales imposed by several Canadian provinces.

Washington has also demanded that Canada remove its remaining retaliatory tariffs on American automobiles.

But the two sides could not bridge their differences before the deadline.

Trump’s tariff war hits America's closest neighbour

The dispute reflects the wider transformation of US trade policy since Trump returned to the White House.

For decades, Canada and the United States operated under a largely free-trading relationship, with enormous volumes of goods crossing their shared border every day.

Trump's tariff programme has changed that relationship dramatically.

The US Chamber of Commerce has warned that higher tariffs could damage both economies, increase costs for American consumers and disrupt supply chains supporting millions of American jobs.

Canada now faces a difficult choice: absorb the economic damage from Trump's tariffs, retaliate and risk provoking Washington into an even harsher response, or eventually return to the negotiating table.

For the moment, Carney has chosen confrontation.

And with Washington warning that it will not tolerate Canadian counter-tariffs, the trade war between America's closest neighbour and its biggest economic partner may be about to get considerably uglier.

SOURCE

Canada exported $556.6 Billion in 2025, with 72.5% going to the USA. ($452.6B)

The USA exported $2,873 Billion in 2025, with 14% going to Canada. ($426.3B)

 

With a population of 40.5 million, that’s $11,200 in exports to the USA for each Canadian.

With a population of 349 million, that’s $1,230 in exports to Canada for each American.

 

Who has whom by the short and curlies? I propose that it isn't the Canucks

 

I’d suggest Carney and Ford get back to the table and do something about that $26B deficit. It's only fair.

10 minutes ago, impulse said:

Canada exported $556.6 Billion in 2025, with 72.5% going to the USA. ($452.6B)

You have a link for that MAGA lie?

AI Overview

Canada's total merchandise exports for 2025 were approximately $726.88 billion US dollars ($726.88B USD), reflecting a slight annual decline of about 0.2% to 1.4% depending on final adjustments. Service exports added an extra $239.2 billion CAD. [1, 2, 3]

Anyhow America like Europe have gone to the dogs with their disastrous governance and politicians, The distant future, on the long term, lies in many African nations who are catching up fast. In the meantime China remains the place to be, as the Gulf oil rich nation's glitter has vanished since the world sees that they are very vulnerable, unstable and cannot defend themselves as they are numb and tipsy with all the easy money comming in. They will end up in forging covert alliances with Iran and the geopolitics could harshly shift in the region. Not for nothing that the smart ones in the Gulf have already shifted their wealth to cushy and neutral Switzerland.

Edited August 22Aug 22 by SingAPorn

8 minutes ago, CallumWK said:

You have a link for that MAGA lie?

AI Overview

Canada's total merchandise exports for 2025 were approximately $726.88 billion US dollars ($726.88B USD), reflecting a slight annual decline of about 0.2% to 1.4% depending on final adjustments. Service exports added an extra $239.2 billion CAD. [1, 2, 3]

You can quibble about the details, but the point stays the same. Canada depends on the US and its markets a lot more than the USA depends on Canada, its products and its markets.

Canada's Top 10 Exports

by Daniel Workman

Nicknamed the Great White North, Canada sold US$556.6 billion worth of exported products in 2025 declining by -2.2% from $569.2 billion one year prior in 2025.

Canada's Top Exports 2025

https://www.worldstopexports.com/

Edited August 22Aug 22 by impulse

15 minutes ago, impulse said:

You can quibble about the details, but the point stays the same. Canada depends on the US and its markets a lot more than the USA depends on Canada, its products and its markets.

I just leave this here for you to consider.

AI Overview

Canada's top export to the United States in 2025 was mineral fuels and oils (including crude oil and natural gas), totaling roughly $119.5 billion to $136.7 billion.

AI Overview

Yes, the United States depends significantly on Canadian petroleum exports. Canada supplies roughly 60% of total U.S. crude oil imports, amounting to about 4 million barrels per day, which meets around one-fifth of total U.S. oil consumption. [1, 2]

I'm sure Canada has other takers for their petroleum products, especially since Trump has blocked the exports from most part of the ME with his illegal war.

Not sure how happy the average American will be when Canada closes the tap

26 minutes ago, CallumWK said:

I'm sure Canada has other takers for their petroleum products, especially since Trump has blocked the exports from most part of the ME with his illegal war.

Not sure how happy the average American will be when Canada closes the tap

If only their Greenies had let them build the pipelines... Talk about an own goal. They finally got one to the west coast, but it's got limited capacity. Mostly, they built it to ship oil to California refineries. They're also shipping some to China now. Good for them.

They've been fighting against one to the east coast so they can export to Europe. It's been on the burner for decades. Don't even get me started about natural gas pipelines or LNG facilities.

Canada is like a meme where a guy is beating his nuts with a hammer and through the tears and agony manages to squeak "feeling the pain yet? have you had enough yet"

Loving the meltdown from Canadian fake news consumers. You guys are hilarious. Just cave in now to mr art of the deal or cave in a week or month. Only you losing!!😅

1 minute ago, SunnyinBangrak said:

Canada is like a meme where a guy is beating his nuts with a hammer and through the tears and agony manages to squeak "feeling the pain yet? have you had enough yet"

Don't get me wrong. I love Canucks, if not their government (and Green) idiots. But if Canada dropped off the face of the earth, (or Putin took it, God forbid), US trade would be down a few percentage points. Canada would be hooped if not for the USA.

13 minutes ago, impulse said:

Don't get me wrong. I love Canucks, if not their government (and Green) idiots. But if Canada dropped off the face of the earth, (or Putin took it, God forbid), US trade would be down a few percentage points. Canada would be hooped if not for the USA.

I agree, I spent allot of time up in Vancouver and have some good friends up there. Canada is just riding the coat tails of the United States success. Dollar for dollar tariff will really hurt the Canadians and it just does not make sense.

How come Carney is wearing an unbuttoned shirt with no tie on the 1st photo?

Who does he think he is? Frank Sinatra?

16 minutes ago, save the frogs said:

How come Carney is wearing an unbuttoned shirt with no tie on the 1st photo?

Who does he think he is? Frank Sinatra?

Being a tie-wearer is completely irrelevant to performance.

Do you really want a list of the differences between Carney's and Trump's performances in economics?

No, not necessary. Really not

Posts with derogatory nicknames, intentional misspellings, or personal remarks will be removed. Spell names correctly for all sides of the debate.

I just wish every country responded to to US tariffs with equivalent tariffs of their own.

Trump would be left without a pot to p!ss in.

1 hour ago, Screaming said:

I agree, I spent allot of time up in Vancouver and have some good friends up there. Canada is just riding the coat tails of the United States success. Dollar for dollar tariff will really hurt the Canadians and it just does not make sense.

A $40 trillion debt, rising inflation and a war with no exit ramp is not my definition of success, but I suppose some posters can delude themselves it is.

Canada could black out most of the eastern seaboard of the US if it wanted. You may want to think about that.

3 hours ago, CallumWK said:

You have a link for that MAGA lie?

AI Overview

Canada's total merchandise exports for 2025 were approximately $726.88 billion US dollars ($726.88B USD), reflecting a slight annual decline of about 0.2% to 1.4% depending on final adjustments. Service exports added an extra $239.2 billion CAD. [1, 2, 3]

What lie is that ? You dispute that approx 70 percent of our exports go to usa ?

Strange.

2 minutes ago, blaze master said:

What lie is that ? You dispute that approx 70 percent of our exports go to usa ?

Strange.

When I was in school $452.6B wasn't 70% of $966.2B. Strange if it is now in MAGA world

Just now, CallumWK said:

When I was in school $452.6B wasn't 70% of $966.2B. Strange if it is now in MAGA world

Oh dear....I see you know nothing about this subject.

Carry on.

9 minutes ago, Lacessit said:

A $40 trillion debt, rising inflation and a war with no exit ramp is not my definition of success, but I suppose some posters can delude themselves it is.

Canada could black out most of the eastern seaboard of the US if it wanted. You may want to think about that.

Additionally not to forget the alliance between Canada and Mexico.

Both nations are currently navigating complex, evolving separate and joint trade dynamics alongside the United States.

Mexico is Canada's third-largest single-country trading partner, while Canada is a top export destination for Mexico in Automotive, aerospace, agriculture, clean technology, and energy.

The 47th and his admin don't want clean technology anyway. They prefer to drill holes... And to isolate the country to be the winners :-)).

1 minute ago, blaze master said:

Oh dear....I see you know nothing about this subject.

Carry on.

That quote is getting old smart MAGA. Get lost

3 hours ago, impulse said:

Canada exported $556.6 Billion in 2025, with 72.5% going to the USA. ($452.6B)

The USA exported $2,873 Billion in 2025, with 14% going to Canada. ($426.3B)

 

With a population of 40.5 million, that’s $11,200 in exports to the USA for each Canadian.

With a population of 349 million, that’s $1,230 in exports to Canada for each American.

 

Who has whom by the short and curlies? I propose that it isn't the Canucks

 

I’d suggest Carney and Ford get back to the table and do something about that $26B deficit. It's only fair.

But reputational damage to America that they are not a trusted trade partner will be immense. People will leave it for now because they feel Trump may well just be an anomoly but if another president comes forward and starts ripping up agreed deals then it will esculate.

Canada are also turning their eyes towards China.

13 minutes ago, CallumWK said:

That quote is getting old smart MAGA. Get lost

So in other words...you've got nothing.

1 hour ago, DonniePeverley said:

But reputational damage to America that they are not a trusted trade partner will be immense. People will leave it for now because they feel Trump may well just be an anomoly but if another president comes forward and starts ripping up agreed deals then it will esculate.

Canada are also turning their eyes towards China.

Australian trade with America is worth $40 billion, encumbered by tariffs when the US has a positive trade balance with Australia. Trade with China is worth $200 billion, unencumbered.

Canada is not alone.

5 hours ago, CallumWK said:

You have a link for that MAGA lie?

AI Overview

Canada's total merchandise exports for 2025 were approximately $726.88 billion US dollars ($726.88B USD), reflecting a slight annual decline of about 0.2% to 1.4% depending on final adjustments. Service exports added an extra $239.2 billion CAD. [1, 2, 3]

Lol, no dear, it was 726 CANADIAN Dollars, ie 563 billion USD. Exactly as impulse stated.

I guess you got confused with Canadian and US Dollars. Let me explain it for you, you need more Canadian dollars to the US Dollar, because the Canadian dollar is worth much less. Hope this helps.

2 hours ago, DonniePeverley said:

But reputational damage to America that they are not a trusted trade partner will be immense. People will leave it for now because they feel Trump may well just be an anomoly but if another president comes forward and starts ripping up agreed deals then it will esculate.

Canada are also turning their eyes towards China

Reputational damage? I see it exactly the opposite, having been doing the import/export thing since 1999. The US has been accepting the short end of trade agreements for decades. Sometimes for the sake of "soft power", and sometimes to allow developing countries room to grow. But even the developed countries have been taking advantage of the US, while laughing all the way to the bank. That was the real reputational damage that Trump's trying to put the brakes on.

Besides, how long can a country buy over half a $trillion more than we sell every year? Do you think that has something to do with that $40T budget deficit? If that means that trinkets at the Pottery Barn and big screens cost more, maybe Americans will buy fewer disposable trinkets and settle for their 65" big screen instead of upgrading to the 85" because they think they need it.

Look up some of the Canadian quotas on (for example) dairy products, and how those affect the tariffs on US dairy. And there's thousands of other examples in the thousands of pages of HTS codes of each country.

Not Canada, but why do you figure there's so few Corvettes and F150's in Thailand? Unequal tariffs. That's why. Same thing...

1 hour ago, impulse said:

Reputational damage? I see it exactly the opposite, having been doing the import/export thing since 1999. The US has been accepting the short end of trade agreements for decades. Sometimes for the sake of "soft power", and sometimes to allow developing countries room to grow. But even the developed countries have been taking advantage of the US, while laughing all the way to the bank. That was the real reputational damage that Trump's trying to put the brakes on.

Besides, how long can a country buy over half a $trillion more than we sell every year? Do you think that has something to do with that $40T budget deficit? If that means that trinkets at the Pottery Barn and big screens cost more, maybe Americans will buy fewer disposable trinkets and settle for their 65" big screen instead of upgrading to the 85" because they think they need it.

Look up some of the Canadian quotas on (for example) dairy products, and how those affect the tariffs on US dairy. And there's thousands of other examples in the thousands of pages of HTS codes of each country.

Not Canada, but why do you figure there's so few Corvettes and F150's in Thailand? Unequal tariffs. That's why. Same thing...

Please tell me how the USA having a positive trade balance with Australia, but applying tariffs nonetheless, is not causing reputational damage there.

Then there's the matter of $350 billion for secondhand nuclear submarines which will be obsolete by the time we get them.

I am not the only Australian that thinks our government should tell Trump to go suck a turd. I understand he has a plentiful supply.

I now see why Comrade trump has ordered 300,000 mt of ground beef to be sold at 25% below market prices.

How many TACOs can you make with all that meat? Grok says about 4 Billion!

The grown-up explains.

Case closed.

Just a reminder that this guy lead the American side in the trade negotiations, and that he's stupid.

It doesn't really seem fair to me. The US GDP is 15 times larger than Canada's, and it has a population 9 times larger but it is expected to match what the US wants to buy from Canada. Just more bulling.