Mark Carney says Canada rejected a U.S. trade offer that demanded too much, as new 50% tariffs deepen tensions between Ottawa and Washington.
Carney rejects what he calls a bad deal
Prime Minister Mark Carney says Canada has walked away from trade talks with the United States after Washington made demands Ottawa could not accept.
Speaking in Ottawa on Saturday, Carney said the U.S. “asked too much and offered too little.”
As a result, Canada suspended the talks. The move came as new U.S. tariffs of up to 50% on almost $30 billion of Canadian goods took effect.
Carney said Canada wanted a fair deal. However, he argued that the latest U.S. terms would have hurt Canadian industries and weakened the country’s ability to set its own policies.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” he said.
Canada puts sovereignty first
Carney said his government had negotiated for more than a year. Throughout that time, he said, Canada remained patient and focused on a long-term partnership.
However, the two sides continued to disagree over several major issues.
Canada wanted lower tariffs, stable trade rules and stronger access to the U.S. market. At the same time, Ottawa wanted to protect key industries and maintain control over Canadian policy.
Carney said some issues were never open for negotiation.
Those included Canadian sovereignty, the protection of the French language and Canadian culture.
“We were not prepared to compromise Canada’s sovereignty or undermine our key industries,” Carney said.
New U.S. tariffs trigger Canadian response
Canada will now match Washington’s new tariffs dollar for dollar, Carney said.
The response will focus on industries such as steel, dairy, appliances, farm equipment, pulp and paper, and electronics.
In addition, Canada will target goods affected by certain U.S. trade measures.
The new Canadian tariffs will take effect on the Tuesday after Labour Day, with full details expected in the coming days.
Carney stressed that Ottawa did not take the step lightly.
He said tariffs could increase prices and reduce choices for Canadian shoppers. He also noted that some U.S. businesses and states could be caught in the dispute despite having no role in it.
Still, he said Canada had to defend its workers and businesses.
Ottawa says the U.S. trade deficit tells only part of the story
Carney also challenged the idea that Canada takes advantage of the United States through trade.
He pointed to Canada’s role as a major energy supplier to the U.S.
Canada supplies most of the natural gas, electricity and crude oil that the U.S. imports, according to figures cited by the prime minister.
He also highlighted American sales to Canada.
Canada remains a major buyer of U.S. cars, trucks, steel and other products. In fact, Carney said Canada buys more American-made cars and trucks than the United Kingdom, Japan and China combined.
Therefore, he argued, tariffs do not simply punish Canada.
They can also raise costs for American consumers.
Canada looks beyond the U.S.
Despite the worsening dispute, Carney said Canada will not put its economic future on hold.
Instead, his government plans to expand trade with other countries and strengthen Canada’s economy at home.
Carney said Canada has signed more than 20 trade and security agreements across five continents over the past year.
He also pointed to new and planned agreements with countries and regions outside North America.
Next, Canada plans to deepen trade links with ASEAN and India. Ottawa also expects to open talks with the European Union this fall.
Carney said these efforts could give Canadian companies access to a much larger global customer base.
Ottawa doubles down on major projects
Carney also used the speech to highlight major domestic investments.
The federal government has referred 27 large projects to the Major Projects Office. Together, he said, they represent about $500 billion in potential private investment.
The projects include ports, mines and energy corridors.
Meanwhile, the government is also pushing ahead with housing, community infrastructure and electricity projects.
Carney said Ottawa plans to double Canada’s electricity-grid capacity by 2050.
He also pointed to major clean-energy plans in Quebec and Atlantic Canada.
The government, he said, wants Canada to become an energy powerhouse while also strengthening national security and defence.
Businesses and workers will get federal support
The government has set aside $25 billion to help Canadian workers and businesses deal with the effects of U.S. tariffs.
The support will target small and medium-sized businesses, large employers and industries facing the biggest disruption.
Ottawa also plans to help companies improve productivity, strengthen supply chains and find new international markets.
At the same time, Carney said the government wants Canadians to buy more Canadian products and use Canadian workers and materials.
Carney says Canada is stronger than before
The prime minister ended his speech with a message of confidence.
He argued that Canada is now less dependent on the United States than it was when the trade dispute began.
He also pointed to stronger trade links, rising investment and plans to grow exports beyond the American market.
For Carney, the strategy is clear: build at home, sell abroad and protect Canada’s ability to make its own choices.
The trade dispute may have closed one door. However, Carney says Canada is already opening others.
His message was simple.
Canada will not wait for Washington to decide its future.
Instead, Ottawa plans to set its own course.
As Carney put it, Canadians are “masters in our own house.”
