President Donald Trump has hit back at Canadian Prime Minister Mark Carney after Canada suspended trade negotiations with the U.S., intensifying tensions between the two countries.
The talks broke down after Carney said Washington introduced last-minute changes to its proposed terms that Canada considered unfair and damaging to its economic interests. Canada subsequently recalled its negotiating team to Ottawa.
The dispute escalated after the U.S. imposed 50% tariffs on roughly $20–28 billion worth of Canadian goods. Canada has announced a matching, “dollar-for-dollar” response, with retaliatory tariffs scheduled to take effect September 8 on products including steel, dairy, electronics and agricultural equipment.
Carney said the final U.S. proposals included restrictions that could affect Canada's ability to negotiate trade agreements with other countries. He also cited disagreements over automotive tariffs and Canadian language and cultural protections as reasons the negotiations fell apart.
Trump, meanwhile, sharply criticized Canada's position in his first public response following the collapse. He accused Canada of wanting the “benefits of being a State” without being one and also complained about tariffs charged to American farmers.
U.S. Trade Representative Jamieson Greer has offered a different account, arguing that Canada declined to finalize terms that Washington believed had already been agreed upon and accusing Ottawa of introducing new demands.
With both sides now imposing or preparing retaliatory tariffs, the dispute risks further damaging an economic relationship that is deeply important to businesses and consumers in both countries.