Trade talks collapse as U.S. hits Canada with 50% tariffs, Carney vows retaliation
Canada's prime minister called it a trade war after negotiations broke down Friday night, with premiers across the country split on how loudly to cheer Ottawa's response.
Why it matters
Alberta's farmers and agricultural sector could face significantly higher equipment costs as the tariff dispute escalates.
Prime Minister Mark Carney said Canada woke up Saturday in a trade war after talks with the United States government collapsed the night before. U.S. President Donald Trump had introduced new 50 per cent tariffs on billions of dollars in Canadian exports, prompting Carney to pledge dollar-for-dollar retaliation beginning next month against sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
Carney said he walked away from talks because the Americans offered a "bad deal" that would have restricted Canada's ability to make trade deals with other partners and weakened protections for the French language. He called it "a power play" and "a question of sovereignty," confirming when asked that Canada is now in a trade war with the U.S.
Alberta Premier Danielle Smith struck a more cautious tone than other leaders, saying Canadians should not celebrate retaliatory tariffs. She warned that Alberta farmers could face 50 per cent higher costs for equipment needed to produce food, calling that outcome something to lament rather than cheer, and said she hoped negotiators would resume talks soon.
Other premiers largely rallied behind Carney's approach. Ontario Premier Doug Ford, breaking days of silence, said Trump could not be trusted and urged all premiers to fight together as "Team Canada." Quebec Premier Christine Fréchette said the new tariffs affect $7.7 billion of goods from her province and announced support programs for affected businesses, while premiers in New Brunswick, Nova Scotia, Newfoundland and Labrador, P.E.I. and British Columbia issued statements backing a united national response and encouraging residents to buy local.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.