'Unfair, Uneconomic': Mark Carney Suspends US Trade Talks as Midnight Tariffs Loom

Canadian Prime Minister Mark Carney suspended high-stakes trade negotiations with the United States late Friday night, ordering his negotiating team back to Ottawa after Washington introduced last-minute demands that rendered a compromise impossible.

The breakdown in discussions comes hours before a midnight deadline, triggering a fresh wave of trade hostilities between the two North American neighbours.

Negotiation Team Recalled to Ottawa

Addressing the sudden freeze in discussions, Carney stated that Canadian officials worked diligently up to the final hours before Washington shifted its demands, undermining the feasibility of an agreement.

"I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa," Carney announced in a official statement. "They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute. However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."

Dollar-for-Dollar Retaliatory Duties

The failure to secure a pact paves the way for Washington to slap a 50 per cent tariff on roughly $28 billion worth of Canadian goods starting at midnight.

In response, Ottawa pledged immediate countermeasures to shield domestic industries and employment sectors. Canada intends to match the American duties dollar-for-dollar across key economic segments to protect local workers and businesses from external market shocks.

U.S. Trade Representative Jamieson Greer voiced disappointment over the impasse, alleging that Canada declined to sign off on the proposed arrangement and disrupted the balance forged during earlier rounds of discussions.

Cushioning the Economic Fallout

To lessen the impact on domestic supply chains, the Canadian federal government is preparing supplementary economic support packages for impacted industries. The new financial framework will build on nearly $25 billion in economic aid deployed over the past 18 months.

Despite the breakdown in dialogue, Canadian leadership underscored its commitment to accelerating infrastructure investments, diversifying international trade partnerships beyond the United States, and safeguarding domestic economic stability.