Canada just walked away from the table. Prime Minister Mark Carney announced on August 21 that his government is suspending trade negotiations with the United States, choosing instead to focus on strengthening the domestic economy and pursuing new trade deals with other countries.
The decision came hours before the US slapped 50% tariffs on an estimated $20B to $28B worth of Canadian exports. Canada’s response: matching retaliatory tariffs on US goods, dollar for dollar.
What happened in Washington
The collapse didn’t come out of nowhere. Canadian officials had been in Washington for weeks, negotiating with US Trade Representative Jamieson Greer over the terms of a potential trade agreement.
Then the US moved the goalposts. Carney cited last-minute modifications to the proposed terms that, in his view, made any viable deal impossible. Rather than accept conditions he considered unfair, he pulled the plug entirely.
