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Canada-US trade talks have ended after Prime Minister Mark Carney rejected three U.S. demands. The disputed terms covered vehicle tariffs, Canada’s trade policy, and protections for French language and Canadian culture. Carney recalled Canada’s negotiators from Washington Friday night, ending negotiations.
The breakdown came before the United States imposed 50% tariffs on $20 billion of Canadian exports. On Saturday, Carney called the proposal “a bad deal” and said Washington “asked too much and offered too little.” He added, “We cannot accept what they offered, and we will not give what they asked.”
The auto sector became a central point of disagreement. Carney said Washington wanted different treatment for Canadian parts and steel used in vehicles. The United States also refused to extend proposed tariff relief from passenger cars to medium and heavy trucks.
That exclusion would cover Canadian production of Ford F-350, F-450 and F-550 trucks in Oakville. It would also affect General Motors’ Silverado production in Oshawa. “No rationale, just for exclusion,” Carney said. He argued that the terms would make those Canadian operations less competitive over time.
Ottawa had offered to remove its remaining retaliatory duties on steel, aluminum and autos if Washington substantially reduced its tariffs. Canada also planned to encourage provinces to return alcohol to store shelves. Those offers failed to resolve the dispute over larger vehicles.
Carney said the United States also sought limits on Canada’s ability to negotiate trade agreements with other countries. Washington wanted Ottawa to align some Canadian tariffs with American trade policy, according to his account. Carney described that condition as a matter of national sovereignty.
Canada has expanded economic and security ties beyond the United States recently. Carney said Ottawa had secured 20 new partnerships and planned to widen market access. “The U.S. introduced, in the last hours, efforts to restrict our ability to have other trade deals,” he said.
Language and cultural protections formed the third dispute. Carney said proposals threatened rules supporting French, Quebec and Canadian culture. The measures included policies for online streaming, cultural production and French labeling requirements.
“This was not our choice,” Carney said in French. “They made changes, including threats on the French language and Quebec culture and Canadian culture.” He said Canada would not accept those terms.
U.S. tariffs cover products including wine, dairy goods, furniture, cement, clothing and hockey equipment. They affect about 5% of Canadian exports to the United States. Existing American duties also apply to Canadian steel, aluminum, autos and some forestry products.
Carney said Canada will answer “dollar for dollar” on September 8. Ottawa plans duties on U.S. steel, dairy products, appliances, farm equipment, pulp and paper, and electronics. The government will also provide C$25 billion in assistance to affected companies.
Asked if the countries were at war, Carney called the dispute an attack. “You’re at war when you’re attacked, and we got attacked,” he said. He acknowledged Canada’s tariffs could raise domestic prices and reduce consumer choice.
U.S. Trade Representative Jamieson Greer called the negotiations “a missed opportunity for Canada.” He said Washington would respond to Canadian retaliation. Greer said the United States had no further Canada-US trade talks planned.
