Canadian Prime Minister Mark Carney has criticised Donald Trump, describing a fresh wave of US tariffs on Canada as a "miscalculation" designed to "hurt and divide us", after trade talks broke down late on Friday.
The 50 percent tariffs came into force at midnight, marking the start of the new trade measures. Mr Carney attributed the collapse of negotiations to what he described as the Trump administration's "uneconomic" and "unfair" demands, arguing that they ultimately undermined efforts to reach an agreement.
Talks suspended after 'uneconomic' demands
Mr Carney said he walked away from a deal because he was not prepared to "compromise Canada's sovereignty". Speaking to Canadians on Saturday morning, he said: "They asked too much and they offered too little. In recent days, the United States proposed new terms that were uneconomic, unfair, and undermined the net benefits for Canada, and called into question the reliability of any deal. In short, they asked too much, and they offered too little."
On Friday, the Canadian PM announced that while important progress had been made, "that progress has not been enough to meet our objectives for Canadians." In an emailed statement minutes before the deadline, he said: "As a result, this evening, I have decided to suspend trade negotiations with the US and have directed Canada's negotiators to return to Ottawa."
Tariffs to hit $20 billion of imports
According to the Office of the US Trade Representative, the tariffs apply to approximately $20 billion worth of Canadian imports entering the United States. The new import duties are expected to affect a wide range of products, including hockey sticks, certain building materials, alcoholic beverages and selected clothing items, potentially increasing costs for businesses and consumers alike.
Tariffs, which are taxes imposed on goods imported from other countries, have been a central element of Donald Trump's trade policy. The US president has argued that these measures help protect domestic industries, strengthen American manufacturing and encourage job creation within the United States.
Critics, however, contend that tariffs have increased costs for American consumers and businesses while also disrupting international trade and placing additional strain on the global economy. The prime minister added that Canada will match US tariffs "dollar-for-dollar" from 8 September.
