Carney rejects Trump deal as Canada hits back
SCMP · 3 SOURCESabout 2 hours ago2 MIN
Summary
Canada’s trade talks with the United States collapsed just before a deadline set by US President Donald Trump, after Prime Minister Mark Carney rejected what he described as an unfair last-minute deal. Washington then imposed 50 per cent tariffs on about US$20 billion of Canadian goods from Saturday, and Ottawa said it would answer with “dollar-for-dollar” tariffs on US products from September 8.
Key Points
- Carney said Canada would not let any country determine its future and would set its own course after negotiations with Washington broke down on Friday
- The new US tariffs took effect just after midnight on Saturday, covering roughly US$20 billion of Canadian goods, including products such as hockey sticks and cement.
- Ottawa’s retaliatory tariffs will also target US$20 billion worth of US goods, including dairy, steel, appliances, pulp and paper, and electronics.
- Carney said both sides had been close to a mutually beneficial agreement earlier in the week, but accused the US side of introducing unfair and uneconomic last-minute changes.
- He also warned that repeated US disregard for existing trade rules, including the Canada-United States-Mexico Agreement, undermines confidence ahead of future renewal talks.
Why It Matters
For Hong Kong readers and businesses, the dispute adds another layer of uncertainty to North American supply chains and pricing in goods linked to steel, electronics and consumer products. It also shows that even close US allies are facing abrupt tariff shifts, complicating planning for exporters, investors and firms with exposure to Canada-US trade.