Canada-U.S. trade talks collapse as 50% tariffs hit $28B in exports
Prime Minister Mark Carney pulled negotiators from Washington after a midnight deadline passed without a deal, promising dollar-for-dollar retaliation against the new U.S. tariffs.
Why it matters
Higher U.S. tariffs and Canadian countermeasures could raise costs and disrupt markets for Alberta exporters and consumers alike.
Talks between Canada and the United States broke down late Friday, hours before a deadline that triggered new 50 per cent U.S. tariffs on $28 billion worth of Canadian goods, including hockey sticks, honey, essential oils and dairy products. Prime Minister Mark Carney suspended negotiations and recalled Canada's negotiating team to Ottawa, saying last-minute changes to U.S. proposed terms were "unfair, uneconomic" and undermined confidence in any deal.
Trade Minister Dominic LeBlanc and chief negotiator Janice Charette had spent nearly two weeks in Washington, including hours of talks Friday with U.S. Trade Representative Jamieson Greer. Greer said the two sides had "declined" to finalize a tentative agreement and blamed Canada for new demands and walk-backs, calling it a "missed opportunity" that would have included tariff reductions on steel, aluminum, autos and lumber plus formal talks on a renewed USMCA.
Carney said Canada would respond with equal retaliatory tariffs, though details of targeted U.S. goods have not been released. He said the federal government will announce support measures for affected workers and businesses in the coming days.
Provincial leaders voiced support for Ottawa's stance. Ontario Premier Doug Ford backed a strong response, and B.C. Premier David Eby said Canada would keep defending itself. Former Alberta premier Jason Kenney said Canada had made a good-faith effort but was not "cravenly surrendering" to economic pressure.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.