{"id":867839,"date":"2026-08-22T21:46:11","date_gmt":"2026-08-22T21:46:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/867839\/"},"modified":"2026-08-22T21:46:11","modified_gmt":"2026-08-22T21:46:11","slug":"canada-is-in-a-trade-war-with-the-u-s-carney-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/867839\/","title":{"rendered":"Canada is in a trade war with the U.S., Carney says"},"content":{"rendered":"<p>OTTAWA\u2014The United States tried to undermine Canadian sovereignty with last-minute demands attacking Canada\u2019s auto sector, cultural protections and the ability to make trade deals with other countries, Prime Minister Mark Carney said Saturday, describing a last-minute \u201cpower play\u201d from the Donald Trump administration that\u00a0has left trade talks in limbo.<\/p>\n<p>Canada, Carney\u00a0told reporters in Ottawa, is now back in a trade war with the U.S. that \u201cwas not our choice\u201d\u00a0but comes after \u201cgood faith\u201d efforts were met with the offer of a \u201cbad deal.\u201d<\/p>\n<p>The Carney government is preparing \u201cdollar for dollar\u201d retaliation for after Labour Day in response to the Americans\u2019 new 50 per cent tariffs on $28 billion in Canadian exports, which went into force after Canada walked away from trade talks late Friday.<\/p>\n<p>It\u2019s an\u00a0outcome that \u201ccertainly isn\u2019t good news\u201d for the Canada-U.S.-Mexico agreement that covers the majority of Canadian trade with America and is due for a renegotiation this year, Carney said.<\/p>\n<p>This is a new attack on Canada, he added at the end of a defiant news conference. \u201cYou\u2019re at war when you get attacked.\u201d<\/p>\n<p>Lamenting how close Canada and the U.S. were to a deal, Carney said the gap between partnership and competition, \u201cunfortunately, has remained too wide in recent days,\u201d which forced his decision to end discussions.<\/p>\n<p>                    <a href=\"https:\/\/www.thestar.com\/opinion\/star-columnists\/donald-trumps-war-on-canada-will-fail--just-like-last-time\/article_bb26192b-e011-4ee8-b932-04e44cb3beff.html\" class=\"tnt-asset-link\" aria-label=\"Donald Trump&#039;s war on Canada will fail &#x2014; just like last time\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>                &#13;<br \/>\n                        <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAQAAAADCAQAAAAe\/WZNAAAAEElEQVR42mM8U88ABowYDABAxQPltt5zqAAAAABJRU5ErkJggg==\" alt=\"Donald Trump's war on Canada will fail &#x2014; just like last time\" class=\"img-responsive lazyload full white\" width=\"1500\" height=\"1068\" data- data-\/><br \/>\n                <\/a><\/p>\n<p class=\"tnt-summary\">The clarity around Donald Trump\u2019s true intentions is a strategic asset for Canada, Justin Ling writes. We know now, with no ambiguity, that he <\/p>\n<p>                    <a href=\"https:\/\/www.thestar.com\/opinion\/star-columnists\/donald-trumps-war-on-canada-will-fail--just-like-last-time\/article_bb26192b-e011-4ee8-b932-04e44cb3beff.html\" class=\"tnt-asset-link\" aria-label=\"Donald Trump&#039;s war on Canada will fail &#x2014; just like last time\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>                &#13;<br \/>\n                        <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAQAAAADCAQAAAAe\/WZNAAAAEElEQVR42mM8U88ABowYDABAxQPltt5zqAAAAABJRU5ErkJggg==\" alt=\"Donald Trump's war on Canada will fail &#x2014; just like last time\" class=\"img-responsive lazyload full white\" width=\"1500\" height=\"1068\" data- data-\/><br \/>\n                <\/a><\/p>\n<p class=\"tnt-summary\">The clarity around Donald Trump\u2019s true intentions is a strategic asset for Canada, Justin Ling writes. We know now, with no ambiguity, that he <\/p>\n<p>U.S. President Donald Trump\u2019s negotiating team wanted \u201cunacceptable\u201d restrictions on Canada\u2019s ability to execute other trade deals, Carney explained, listing a suite of last-minute demands he said Canada could not accept. Those included trying to exempt medium- and heavy-duty vehicles \u2014 like the Ford trucks set to be produced in Oakville this year \u2014 from auto tariff relief, and demands that Canada drop French-language online content rules.<\/p>\n<p>\u201cWe cannot accept what they\u2019ve offered, and we cannot give what we\u2019ve asked,\u201d he told reporters, after describing the demands as \u201cunfair, uneconomic\u201d and saying they \u201ccalled into question the reliability of any deal.\u201d<\/p>\n<p>Carney\u2019s decision met with a chorus of support<\/p>\n<p>His decision to pull out of trade talks with the Trump administration,\u00a0which comes after he faced political pressure to land a deal with few concessions,\u00a0was met with a largely united show of defiance from premiers and industry leaders.<\/p>\n<p>The collapse of talks late Friday ushers in a sharp escalation in <a href=\"https:\/\/www.thestar.com\/politics\/trump-tariffs\/\" target=\"_blank\" rel=\"nofollow noopener\">bruising U.S. tariffs<\/a> that Carney has vowed to push back against with a \u201cdollar for dollar\u201d retaliation,\u00a0for which he said more details will soon be made public.<\/p>\n<p>A 50 per cent U.S. tariff on $28 billion worth of Canadian goods took effect at midnight \u2014 with business leaders warning about the pain ahead for Canada\u2019s economy and Carney promising relief measures to come.<\/p>\n<p>According to federal government analysis cited to the Star, 56,000 jobs are directly affected by that new round of tariffs.<\/p>\n<p>Speaking to reporters on Saturday, Premier Doug Ford said he didn\u2019t like the deal with the U.S. that was on the table earlier this week and he\u00a0was glad Carney didn\u2019t sign what was offered. \u201cWe never started this fight, but I can assure you, we\u2019re going to win this fight,\u201d the premier said in Toronto before a virtual first ministers meeting on the trade war.<\/p>\n<p>\u201cWe have to use every tool in our toolbox,\u201d Ford said, making an apparent reference to his suggestion that Canada leverage its exports of electricity and critical minerals to the U.S.\u00a0The premier, in a letter to Carney earlier this week that his office shared Saturday, also suggested hitting Trump-supporting states harder.<\/p>\n<p>Carney on Saturday said Canada\u2019s response will be \u201cconcentrated\u201d in sectors like \u201csteel, dairy, appliances, agricultural equipment, pulp and paper,\u2019 and electronics, as well as those hit by the existing sectoral levies and the new wave of 50 per cent tariffs.<\/p>\n<p>He did not rule out Ford\u2019s suggestion of using energy and critical minerals as leverage, only saying, \u201cWe\u2019ll see.\u201d<\/p>\n<p>\u201cCanada fuels American growth, supplying 99 percent of their natural gas imports, 85 percent of their electricity imports, 60 percent of their crude oil imports,\u201d Carney said. \u201cI don\u2019t think they want us to stop sending any of that energy.\u201d<\/p>\n<p>Ford said, \u201cDonald Trump is trying to inflict pain on every Canadian,\u201d and we should \u201cinflict pain right back until he realizes that we\u2019re his number one customer in the world.\u201d<\/p>\n<p>\u201cPresident Trump, he can\u2019t be trusted,\u201d Ford added. \u201cSimple as that.\u201d<\/p>\n<p>B.C. Premier David Eby, Nova Scotia\u2019s Tim Houston and Quebec\u2019s\u00a0Christine Fr\u00e9chette also blasted the U.S. Saturday, offering their support for the prime minister\u2019s move.<\/p>\n<p>\u201cIt\u2019s the definition of an abusive relationship,\u201d said Eby, warning the U.S. that there\u2019s no shortage of other markets for Canadian products, including B.C.\u2019s softwood lumber.<\/p>\n<p>\u201cWe\u2019ve got lots of other dance partners out there.\u201d<\/p>\n<p>Meanwhile, Alberta Premier <a href=\"https:\/\/www.thestar.com\/news\/danielle-smith\/\" target=\"_blank\" rel=\"nofollow noopener\">Danielle Smith<\/a> broke ranks, saying she was \u201cdeeply disappointed\u201d a deal could not be reached and urging Ottawa to \u201crestart negotiations as soon as possible.\u201d<\/p>\n<p>\u201cAlberta has always advocated for a tariff-free relationship, and will continue to do so,\u201d Smith said. \u201cNo one benefits from a trade war. Tariffs and counter-tariffs hurt businesses, workers and families on both sides of the border, while weakening one of the most important economic and security relationships in the world.\u201d<\/p>\n<p>Conservative Leader Pierre Poilievre said in a statement he was \u201cdisappointed that the United States has chosen to impose further unjustified tariffs on Canada\u201d that \u201cthreaten the jobs and livelihoods of families right across our country.\u201d<\/p>\n<p>\u201cCanadians must stand united to defend our country against these unfair attacks on our jobs and businesses,\u201d he wrote. \u201cCanada cannot accept one-sided tariffs that will deindustrialize our country. Nor can we accept a bad deal.\u201d<\/p>\n<p>It was a stark difference in tone from his Ontario MP Jamil Jivani, a close friend of U.S. Vice-President JD Vance.\u00a0Jivani said in a social media post that Carney and Ford have from the beginning \u201cput their political self-interests ahead of Canadian workers.\u201d<\/p>\n<p>In an interview with the Star, he accused the two leaders of spending \u201ca lot more time stoking anti-American sentiment\u201d rather than building relationships with their counterparts.<\/p>\n<p>\u201cI feel like the relationship side of this wasn\u2019t really being worked on the way it should have been.\u201d<\/p>\n<p>U.S. blames Canada as industry groups brace for impact\u00a0<\/p>\n<p>By Saturday afternoon, Trump, who had expressed optimism about a deal hours before talks collapsed, had not yet commented on the breakdown or Carney\u2019s response.<\/p>\n<p>In a Saturday morning interview with Fox News,\u00a0U.S. trade negotiator Jamieson Greer said \u201cit\u2019s hard to say\u201d when talks with Canada will resume, but \u201cwe don\u2019t have new talks planned with the Canadians\u201d at the moment.<\/p>\n<p>\u201cWe\u2019re moving forward with measures that respond to Canadian retaliation,\u201d he said. \u201cAfter a year of that retaliation, we\u2019ve said \u2018enough,\u2019 and so we\u2019ve taken countermeasures.\u201d<\/p>\n<p>Canada \u201calways had the best deal, and they still would have\u00a0an even better deal, but they didn\u2019t want that,\u201d Greer said.<\/p>\n<p>                    <a href=\"https:\/\/www.thestar.com\/news\/analysis\/mark-carney-has-cemented-his-post-as-leader-of-the-anti-trump-resistance\/article_db9abfa1-1170-48bd-afb3-f1b33522316b.html\" class=\"tnt-asset-link\" aria-label=\"Mark Carney has cemented his post as leader of the anti-Trump resistance\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>                &#13;<br \/>\n                        <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAQAAAADCAQAAAAe\/WZNAAAAEElEQVR42mM8U88ABowYDABAxQPltt5zqAAAAABJRU5ErkJggg==\" alt=\"Mark Carney has cemented his post as leader of the anti-Trump resistance\" class=\"img-responsive lazyload full white\" width=\"1781\" height=\"1164\" data- data-\/><br \/>\n                <\/a><\/p>\n<p class=\"tnt-summary\">\u201cWe cannot accept what they\u2019ve offered, and we will not give what they have asked.\u201d<\/p>\n<p>                    <a href=\"https:\/\/www.thestar.com\/news\/analysis\/mark-carney-has-cemented-his-post-as-leader-of-the-anti-trump-resistance\/article_db9abfa1-1170-48bd-afb3-f1b33522316b.html\" class=\"tnt-asset-link\" aria-label=\"Mark Carney has cemented his post as leader of the anti-Trump resistance\" rel=\"nofollow noopener\" target=\"_blank\"><\/p>\n<p>                &#13;<br \/>\n                        <img loading=\"lazy\" decoding=\"async\" src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAQAAAADCAQAAAAe\/WZNAAAAEElEQVR42mM8U88ABowYDABAxQPltt5zqAAAAABJRU5ErkJggg==\" alt=\"Mark Carney has cemented his post as leader of the anti-Trump resistance\" class=\"img-responsive lazyload full white\" width=\"1781\" height=\"1164\" data- data-\/><br \/>\n                <\/a><\/p>\n<p class=\"tnt-summary\">\u201cWe cannot accept what they\u2019ve offered, and we will not give what they have asked.\u201d<\/p>\n<p>The head of the association representing Canada\u2019s aluminum producers on Saturday blamed U.S. Commerce Secretary Howard Lutnick for the last-minute breakdown in the talks, telling the Star the tough-talking former finance executive had tried to reopen several already-settled parts of the tentative agreement.<\/p>\n<p>\u201cThe whole deal soured up when Lutnick got into the room and started relitigating,\u201d said Jean Simard, CEO of the Aluminum Association of Canada and a member of the federal Canada-U.S. advisory council.<\/p>\n<p>Flavio Volpe, head of Canada\u2019s Automotive Parts Manufacturers\u2019 Association, agreed.<\/p>\n<p>\u201cI don\u2019t believe in coincidences,\u201d Volpe told the Star. \u201cHoward Lutnick entered the room and the breathing room got tighter on automotive.\u201d\u00a0<\/p>\n<p class=\"x_MsoNormal\">He said the U.S. offered a tariff reduction in autos from\u00a025 to 15 per cent, but tried to exclude medium and heavy truck production later in the week, which would have hit Ford\u2019s investment in Oakville, as well as GM\u2019s Oshawa assembly plant \u2014 \u201cexplicitly targeting two of the seven automotive assembly plants in Canada.\u2019\u201d<\/p>\n<p>Asked whether\u00a0Lutnick scuttled the talks in the final days, Carney would only say the Canadian team was united, but \u201cyou cannot say that about the United States administration.\u201d<\/p>\n<p>Candace Laing, the CEO of the Canadian Chamber of Commerce, called the new 50 per cent tariffs \u201ca body blow to North American competitiveness in this self-defeating trade saga.\u201d<\/p>\n<p>\u201cA whopping, non-absorbable tariff is not sustainable or viable for business,\u201d Laing said in a written statement.<\/p>\n<p>But\u00a0Unifor national president Lana Payne said that accepting the U.S. demands could have set a dangerous precedent with the renegotiation of CUSMA still looming.<\/p>\n<p>\u201cWould we be in a place where we had to give up too much leverage at the first table and then the U.S. would be demanding more concessions at the second?\u201d Payne told reporters Saturday.<\/p>\n<p>\u201cIt was roll over, or draw a line in the sand, and we chose to draw a line in the sand.\u201d<\/p>\n<p>With files from Tonda MacCharles, Stephanie Taylor and Robert Benzie.<\/p>\n","protected":false},"excerpt":{"rendered":"OTTAWA\u2014The United States tried to undermine Canadian sovereignty with last-minute demands attacking Canada\u2019s auto sector, cultural protections and&hellip;\n","protected":false},"author":2,"featured_media":867840,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[49,48,44],"class_list":["post-867839","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-ca","tag-canada","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/867839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=867839"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/867839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/867840"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=867839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=867839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=867839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}