Canada Hits Back After Collapse of Trade Talks, PM Says Retaliation ‘Reluctant but Necessary’

Canada has vowed to retaliate against the United States after last‑ditch trade negotiations collapsed, triggering a fresh round of tariffs and a political firestorm on both sides of the border. Prime Minister Mark Carney said Canada was responding “reluctantly” but had no choice but to protect its national interests, promising details of counter‑measures in the coming days.

Support for the prime minister has surged across Canada’s political spectrum. Leaders of federal parties including the Conservative opposition and several provincial premiers have backed the government’s stance, describing the latest US tariffs as unjustified and economically damaging.

Tariffs have been central to President Donald Trump’s trade strategy, with the White House arguing they boost American manufacturing and protect domestic jobs. Critics counter that they have driven up prices for US consumers and destabilised global markets.

Carney delivered his first public remarks on Saturday after announcing late Friday that negotiations had failed. He accused US officials of making “last‑minute changes” that were “unfair” and “uneconomic,” saying the terms presented were too restrictive including limits on Canada’s ability to strike future trade deals with other countries.

US negotiators rejected that claim, accusing Canada of introducing “new demands and walk backs” on previously agreed terms. US Trade Representative Jamieson Greer told Fox News there were no plans to resume talks, adding that Washington had been prepared to cut some tariffs as part of the now‑abandoned deal.

Canadian premiers voiced sharp criticism of the US position. Ontario’s Doug Ford said Trump “can’t be trusted,” while British Columbia Premier David Eby warned that US demands would have reduced Canada to “the economic equivalent of the 51st state.” Conservative leader Pierre Poilievre also backed Carney, calling the new levies “unjustified.”

Quebec Premier Christine Fréchette cautioned that jobs would likely be lost, vowing support for affected industries. Alberta Premier Danielle Smith urged both sides to return to the negotiating table.

The collapse follows more than a year of on‑again, off‑again negotiations, intensified by a US deadline threatening further tariffs. It also casts a shadow over the mandatory review of the USMCA, the North American trade pact underpinning $1.6 trillion in annual commerce across Canada, the US and Mexico.

Canada and Mexico had requested a 16‑year renewal earlier this summer, but the US declined to extend the agreement in its current form.

Asked how the failed talks would affect the future of North American trade, Carney said the development was “certainly not good news.”