Canada suspends trade talks, new U.S. tariffs take effect

Late Friday evening, Prime Minister Mark Carney sent his negotiating team home and said Canada will match U.S. tariffs “dollar for dollar” in retaliation. 

Saying no new trade deal was possible thanks to unfair “last minute changes” brought forward by the American side to a reportedly nearly-negotiated agreement meant to stave off new American tariffs on about $28 billion worth of Canadian goods, Canada announced it was suspending talks last night shortly before the midnight deadline.

The 50% tariffs will apply to a wide range of goods and while it’s on only about 5% of goods traded with the United States, it will hit Ontario, Quebec and British Columbia harder than the rest of the country. The tariffs will hurt various industries in Southwestern Ontario, including dairy, honey, hockey equipment, flowers, spirits, wine, beer, bitters, luggage, clothing, appliances, fibre optic cabling, toys, fishing rods and dozens of other items.

The PM’s statement last night read, in part, “We have recognised from the beginning that America has changed, and that we will not return to our old relationship. Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.

“We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers. Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline.”

Later in the statement, Prime Minister Carney added the last minute changes proposed by the U.S. “were unfair, uneconomic, and called into question the reliability of any deal.”

American negotiators, known for their strict adherence to the truth, of course blamed Canada. “Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” said American Trade Representative Jamieson Greer.

Prime Minister Carney said the federal government will, “in the coming days” announce supports for Canadian workers affected by the new U.S. tariffs.

CHCH News will have more to come on this story and how it will affect the local economy on the Evening News and chch.com.