Canada suspends US trade talks, vows 'dollar for dollar' tariff retaliation
Canada will match US tariffs 'dollar for dollar' as trade talks break down
Canada has suspended trade negotiations with the US after a last-minute breakdown, with Prime Minister Mark Carney vowing to match new US tariffs 'dollar for dollar.' The move comes as a fresh wave of 50% US tariffs on Canadian goods, including wine, dairy, and hockey equipment, took effect. Carney cited 'unfair' and 'uneconomic' last-minute changes in US terms, while US Trade Representative Jamieson Greer accused Canada of new demands and walk-backs. The collapse marks a sharp reversal from earlier optimism and raises economic stakes for both nations.
Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.
- cdrnsf
Everything the current US administration has done has been an unmitigated disaster. Tariffs are taxes. Manufacturing is still declining, not returning and a man who could not run casinos successfully is not going to change that. His economic and foreign policy are dictated entirely based on who flatters him the most. Add to that continued environmental damage, domestic policy dictated by a regressive religious minority and a lack of interest in performing the duties of the position in favor of caring about only what it can be leveraged for. A failing state operating on grievances and stupidity.
- hunglee2
The world should've collectively recognised what Liberation Day was and responded together, in lock step, and in kind.
Instead, the Europeans caved, Japanese caved (PM resigned after doing so), Republic of Korea caved (PM resigned after doing so), India of course caved and so on, shattering any prospect of collective action which might pull the rogue hegemon back into line.
Now, the US is simply able to renege or renegotiate the bilateral deals whenever he feels like it, forcing the other party to face down the US by themselves - not many can do this, maybe only China. Anyways, I wish the Canadians well and I hope they gain global support
- jmward01
We are leaving the time when trust allowed trade agreements that went beyond the maximum minimum with the US. Trust allowed countries to make agreements with the US that had obvious potentials for exploitation, but overall they were followed to the greater benefit of both. Trust enabled that. Now the US has decided to break trust and countries know it. That lost premium means a major loss in value to both sides but ultimately the US will be the biggest looser because the other algorithm here is tit for tat. In a world economy, countries that cooperate will thrive and those that exploit will fail. We are seeing completely uneducated, emotion driven, economic policy play out.
- fidotron
This was totally the right move, if for no other reason than it's the only thing that this US admin will respect in the long run.
Being in Canada though this does look v. short sighted of the US. All this is going to achieve is pushing Canada much closer to other countries, particularly China, which at least superficially these negotiations were meant to prevent.
- bradley13
This is the way. If the US imposes tariffs, impose tariffs on US goods.
The US administration twists facts to suit their agenda. For example, they often complain about the trade deficit the US has with other countries. However, that deficit often (depends on the country) only exists if you exclude digital goods (Microsoft, Google, Apple, etc.).
If the rest of the world were to restrict the import of those digital goods, in the interest of fairness, the tech lobbyists would swarm D.C. in panic.
- Phelinofist
Good for Canada, quite a shame the EU folded so easily
- Aboutplants
I’m interested to see if this spurs other countries to push back on this administration. Once you get a couple of countries to collectively stand firm is when things take a turn. Bullies can only push for so long
- nchmy
Nice to see them putting up a fight. Though I assume this will cause pain for everyone.
One note: aren't these sentences strange - like a series of half-thoughts? Especially the 2nd paragraph.
> 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.
- arecurrence
Very interesting speech and Q&A from Prime Minister Carney on YouTube https://www.youtube.com/watch?v=Dx9ExdjaREg .
He provides some details about the last minute demands that the US made including restricting Canada's ability to trade with other countries. He also refers to the US signature as being written in "pencil".
- kjellsbells
If Alice and Bob strike a deal then Alice must be confident that an acceptable subset of her interests are met and that Bob will stick to the deal.
If Bob shows evidence of not sticking to deals, there's little point in Alice striking any deal.