Canadian Prime Minister Mark Carney has defended his decision to suspend trade talks with the US, arguing that Washington’s approach represents a shift away from decades of economic integration between the two countries.
Speaking in Ottawa on Saturday (22 Aug), Carney said Canada had spent more than a year seeking a comprehensive agreement but concluded the latest terms did not provide a reliable or balanced partnership.
Carney said the United States had sought changes to the treatment of Canadian auto content under tariff rules, restrictions on Canada’s ability to pursue trade agreements with other countries, and limits on protections related to language, culture and what he described as “in effect, our sovereignty”. He said these issues were among the areas where Canada was unwilling to compromise during negotiations.
Responding to a reporter who asked why his tone suggested Canada was entering a “trade war”, Carney said: ‘Because we were attacked, like you’re at war when you get attacked. We got attacked.” He said Canada would respond while focusing on areas it could control.
The Prime Minister said Canada would introduce dollar-for-dollar tariffs against selected US goods, while pursuing wider economic diversification through new trade agreements, infrastructure investment and domestic industry support.
The dispute follows the United States’ introduction of 50% tariffs on a range of Canadian imports, including products such as wine, hockey equipment, cement, clothing and other manufactured goods.
Washington said the tariffs were a response to what it described as unfair treatment of American exports, while Carney argued that the rationale for the measures had shifted over time, citing changing justifications ranging from fentanyl concerns and digital taxes to dairy policy and other trade issues.
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