Expansion | Canada claims it avoided a bad deal with the US by abandoning trade talks

Carney breaks with Washington, avoids "a bad deal" and announces dollar-for-dollar retaliation as internal criticism grows in the US.

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The Prime Minister of Canada, Mark Carney, defended this Saturday that the country has managed to free itself from "a bad deal" with the United States after announcing its withdrawal from trade negotiations, denouncing last-minute changes proposed by Washington, "unfair and uneconomic," in sectors such as steel or automotive that "called into question the reliability of any agreement" and that, moreover, represented a direct attack on Canadian sovereignty.

Carney has acknowledged that the collapse of dialogue implies the immediate application of a 50% tariff from the United States on Canadian exports, valued at about 24 billion euros. Even so, he emphasized that, although his government "cannot control the storm blowing from Washington," it is in a position to "chart a new course" through the "diversification" of its trade alliances and the adoption of countermeasures "dollar for dollar," in a call to unite in the face of this new economic scenario.

In his first appearance before the press after the break, the Prime Minister sent a direct message to Trump about Canada's strategic role as an energy supplier for the United States. "Canada drives U.S. growth by supplying 99% of its natural gas imports, 85% of its electricity imports, and 60% of its crude oil imports," he recalled.

The leader admitted the harshness of the response, although he considered it inevitable because, with Washington's new demands, "the gap between partner and competitor" has become "too large." For that reason, he ordered his negotiating delegation last night to return immediately to Ottawa.

"We cannot accept what they have offered us and we will not give them what they have asked for," Carney stated, accusing the U.S. Administration of trying to introduce last-minute "restrictions to prevent Canada from signing trade agreements with other countries." "They asked for a lot and offered very little," he insisted, convinced that "all opportunities" to save the deal have been exhausted.

In light of this situation, and given that Canadian representatives "were not willing to compromise Canada's sovereignty or undermine its key industries," the government has opted to activate a package of trade retaliations that, as Carney has announced, will come into effect after the Labor Day holiday in Canada, on September 8.

Commercial response dollar for dollar to Washington

"Canada will respond dollar for dollar to the sanctions from the United States in the areas of steel, dairy, agricultural equipment, or paper," proclaimed the prime minister. He emphasized that this is a decision made "grudgingly" due to the cost it will entail, but he considers it essential because "it is in the best interest of Canada" by reinforcing its international image as a "strong" country and, above all, to safeguard employment and competitiveness in the domestic market.

Carney has committed to doing "whatever it takes" to bolster the national economy with new initiatives that will be specified in the coming days. "We are going to do whatever it takes to support these businesses. The details will be known early next week along with the tariff response," he indicated. "We will support these businesses for as long as necessary. In other words: beyond the current U.S. administration," he stressed.

The prime minister has denounced that the purpose of the United States in sabotaging the talks with Ottawa from the beginning has been "to harm and divide" the country, something he has labeled as a "miscalculation." In response, he described the Canadian reaction as an exercise in national pride and social cohesion.

"They want to break us to take us over, and they are not going to succeed," he stated, convinced that "we are the masters of our own destiny."

Washington defends the pact as internal criticism grows

After Carney's intervention, the U.S. trade representative, Jamieson Greer, stated on Fox News that the text agreed upon with Canada was "the best deal" possible.

"We want to protect American workers and American supply chains. We have offered Canadians to enter that path, significantly reduce tariffs on their steel, cars, and even their lumber, things that are important to them. They always had the best deal and would still have it, even better, but they did not want it," Greer defended.

The commercial manager has not closed the door to a possible return to the negotiating table. "It's hard to say. We do not have new contacts with the Canadians planned. We are with the measures to respond to Canadian reprisals," he pointed out, before recalling that, since President Donald Trump started his tariff agenda, only "the People's Republic of China and Canada" have announced countermeasures.

In parallel, criticisms within the United States have intensified. The Democratic governor of California, Gavin Newsom, has openly questioned the White House's strategy. "Our closest ally, a critically important trading partner, and Trump applies tariffs of 50 percent to Canada. What the f. are we doing?" he wrote on social media.

In the same vein, the governor of Michigan, Gretchen Whitmer, has warned that the trade escalation with Canada "means a tax increase for families and businesses that raises the prices of basic goods and gasoline." "Companies, especially car manufacturers, will have to decide between laying off their workers or passing the costs onto their customers, who are already suffering from the little games (of the Republicans). This has to end," she demanded.