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Written by Benjamin Lopez Steven Reporter, CBC Politics
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Good afternoon. Given the magnitude of today's Canada-U.S. news, we've got a special edition that couldn't wait for Monday morning.
We'll get you up to speed on why negotiations fell apart last night, what Prime Minister Mark Carney plans to do about new U.S. tariffs, and the reaction across the country and beyond as Canadians gear up for a massive trade fight.
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(Patrick Doyle/The Canadian Press)
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PM Carney says U.S. 'asked too much and offered too little,' vows counter-tariffs after trade talks collapse
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After trade negotiations fell apart late Friday night, Prime Minister Mark Carney is preparing a major counterattack to new U.S. new tariffs that currently affect $28 billion worth of Canadian goods.
Why negotiations failed: Despite hopeful signals all week, Canada-U.S. trade talks came to a screeching halt late Friday night after both sides accused each other of making last-minute changes to a prospective deal.
On Saturday morning, Carney told reporters that Canada was willing to drop remaining retaliatory tariffs on strategic sectors — such as steel, aluminum and autos — in exchange for the U.S. "substantially" lowering its tariffs to levels that made economic sense for Canadian companies to export to the U.S.
But U.S. negotiators wanted even more and offered "too little," Carney said. The new terms Americans proposed were "uneconomic, unfair and undermined the net benefits to Canada, calling into question the reliability of any deal."
Carney listed a few examples. He said the U.S. tried to include restrictions on Canada's ability to strike trade deals with other countries, as well as other restrictions on Canada's protections of its languages, its culture and its sovereignty.
In his own statement, U.S. Trade Representative Jamieson Greer said talks crumbled because Canada didn't accept the agreement the administration had offered, and the Canadians tried to slip in their own last-minute demands. He has not yet explained what those demands were.
Canada's next play: Because the two sides couldn't come to an agreement, U.S. President Donald Trump has now imposed 50 per cent tariffs on $28 billion worth of Canadian goods.
Carney is promising to impose dollar-for-dollar counter-tariffs that will kick in after Labour Day, focusing on key U.S. sectors like steel, dairy, appliances, pulp and paper and electronics.
"We take this step reluctantly," Carney said. "Reluctanctly, because we recognize that some of these measures will raise costs and reduce choice for Canadians… [and] because this trade dispute is preventing Canada and America from doing so much good that we could do together."
The federal government will also provide support to Canadian businesses who will struggle throughout this trade dispute, and details on that will come alongside the counter-tariffs, Carney said.
"We will support these businesses for as long as it takes."
The reaction: All of the federal political party leaders urged Canadians to come together and fight back against the U.S. tariffs, as did an array of provincial and territorial premiers.
Ontario Premier Doug Ford — one of Trump's most vocal critics — said the U.S. tariffs will hurt but struck an optimistic tone while saying Canada will ultimately "win."
"My message to all the premiers is we need to stick together. We need to take a Team Canada approach," Ford said.
On the U.S. side, some governors are sounding absolutely exasperated by Trump's actions.
"Our closest ally. Our critical trading partner. And Trump is hitting Canada with 50 per cent tariffs. What the actual f— are we doing," California Gov. Gavin Newsom, a Democrat, wrote on social media.
On the business side, Canadian groups are deeply concerned about what the tariffs will mean for the Canadian economy.
"This will be a body blow to North American competitiveness in this self-defeating trade saga," Candace Laing, president and CEO of the Canadian Chamber of Commerce said. "A whopping, non-absorbable tariff is not sustainable or viable for business."
Trump has not yet commented publicly about the collapse in trade discussions and looming fight.
– This section compiled by Benjamin Lopez Steven |
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FEATURED STORIES
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(CBC)
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Premiers call for unity, assistance in response to new U.S. tariffs
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Reactions from Canada's premiers have been trickling out since the news broke that Prime Minister Mark Carney suspended trade talks with the U.S. Here's a look at what we've heard so far.
Ontario Premier Doug Ford: Ford briefly said he already didn't like the proposed deal on Wednesday, based on what he had been hearing. But the premier, who's been silent for days, acknowledged that the situation is complicated and gave Carney kudos for walking away. "This is very complicated, folks," Ford said. He ended a news conference by saying Trump "can't be trusted."
Quebec Premier Christine Fréchette: Fréchette spoke briefly with reporters today, expressing concern over lost jobs. Still, she said her government will act quickly to protect Quebec and announced assistance programs that are meant to cushion the blow for industries who are hit particularly hard, and will ask the federal government for further support. She was also clear on one of this week's biggest talking points: "I will not put U.S. alcohol back on shelves."
Alberta Premier Danielle Smith: Smith wrote on X overnight that she is "deeply disappointed that Canada and the United States have not been able to reach a trade agreement." She reiterated that the province will continue to advocate for a tariff-free relationship between Canada and the U.S. "My first concern today is for the Albertans and Canadians whose livelihoods are at risk from these new tariffs and counter-tariffs. ... I welcome the federal government’s intention to provide relief for those businesses that are impacted."
B.C. Premier David Eby: In a news conference just now Eby called the tariffs an "economic attack" on B.C. and Canada. He said the proposed terms of the U.S. deal reveal the "true nature" of what the White House really wants from Canada. "The suggestion that Canada would not trade with other countries or reduce our trade with other countries, would reduce us to the economic equivalent of the 51st state," Eby said. "It was never acceptable to Canadians."
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One of Trump's top deputies has been unsatisfied with trade deal on the table for Canada, sources say
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