Tariff War Begins? Canada Walks Away From US Talks Over ‘Unfair’ Terms, PM Carney Announces Counterattack

A major trade dispute has erupted between Canada and the US as Ottawa halts negotiations over “unfair” terms. PM Mark Carney has warned of matching tariffs as tensions rise.

Post Published By: Ayushi Bisht

Updated : 22 August 2026, 11:24 AM IST

Canada Walks Away From US Talks Over ‘Unfair’ Terms (Img: X)

New Delhi: Canada has suspended trade negotiations with the United States after rejecting Washington’s latest proposed terms as “unfair” and “uneconomic”, Prime Minister Mark Carney announced.

The decision came after months of discussions aimed at securing better trade conditions for Canadian businesses. Carney said Canada had made progress in negotiations but the latest changes proposed by the US failed to meet Ottawa’s objectives.

He directed Canadian trade negotiators to return to Ottawa, stating that the revised US terms raised concerns over the reliability of any future agreement.

Carney Says Canada Will Match Tariffs

Addressing the dispute, Prime Minister Carney said Canada will respond to new US tariffs with a “dollar-for-dollar” approach.

According to the Canadian government, the US is set to impose a 50 per cent tariff on nearly C$28 billion worth of Canadian goods. Ottawa has indicated that it will take similar measures in response. Carney said Canada’s priority remains protecting workers, businesses and industries affected by trade restrictions.

Canada Questions Changing US Trade Approach

Carney criticised Washington’s broader trade strategy, saying the US has changed its approach towards international trade relationships.

He said Canada had already recognised that its traditional economic relationship with the US was evolving and that Ottawa would focus on strengthening domestic industries and expanding partnerships with other countries.

Canada’s government plans to reduce dependence on the US market by increasing access to other global markets through existing free trade agreements.

US Accuses Canada of Changing Negotiation Terms

US Trade Representative Jamieson Greer criticised Canada’s decision, claiming Ottawa refused to finalise a deal despite progress made during discussions.

Greer said new demands and changes from Canada disrupted the balance achieved in recent negotiations. The development came shortly after US President Donald Trump had expressed optimism about reaching a trade agreement with Canada, saying talks were moving in a positive direction.