Carney Rejects US Trade Deal, Says Standoff Amounts to War

Prime Minister Mark Carney said Saturday the standoff with the US over tariffs has moved to a new level. A day after pulling his team from Washington talks, he blasted the latest US trade proposal as "a bad deal" and pledged to match President Trump's new tariffs imposed on Canadian goods "dollar for dollar," the New York Times reports. In a 22-minute televised address, Carney accused the US of acting as an aggressor, saying the duties are "designed to hurt and divide us" and that Canada would not trade away sovereignty or key industries. "You're at war when you're attacked," Carney told the nation, "and we got attacked."

Negotiations collapsed late Friday, per the Wall Street Journal, after the Americans proposed new terms at the eleventh hour—which Carney said "revealed the limits of their commitments to a true economic partnership." The US slapped tariffs of up to 50% on $20 billion in Canadian exports, targeting a broad mix of goods such as plywood, tissue, alcohol, suits, and honey—items often produced by smaller companies that may not survive a major sales hit. Ottawa plans retaliatory tariffs starting Sept. 8 on steel, dairy, appliances, farm equipment, pulp, and paper, and electronics, while providing billions in aid to affected companies. US tariffs took effect Saturday, per the Washington Post.

Carney said the US also sought to tie Canada's trade policy toward other countries to American tariffs and made demands touching French language and culture, which he called unacceptable. He's said in the past that the US policies violate the free trade agreement among the US, Mexico, and Canada, per the Hill. Economists warn the clash could cost Canada up to 90,000 jobs, with no clear path for retaliation that doesn't also sting Canadians. "We have recognized from the beginning that America has changed," Carney said Friday, per NBC News, "and that we will not return to our old relationship."