Prime Minister Mark Carney says trade talks with the United States fell apart at the eleventh hour over last-minute disagreements on how to tariff autos and broader issues of independent Canadian decision-making.
For the past several days, a deal had appeared possible and potentially even likely.
United States President Donald Trump delayed 50 per cent tariffs on billions in Canadian goods by three days, citing progress in trade talks, and even claimed “we have a deal” with Canada.
While the Canadian delegation was more cautious in its assessment, Carney shared details of a potential deal with Canada’s premiers earlier in the week, asking them to start selling American alcohol again as part of the agreement.
But at the last minute, Carney recalled his negotiating team to Ottawa, telling the nation he was “walking away from a bad deal.”
Here are the issues the prime minister said stalled progress on a deal that looked reachable in the not-too-distant past.
Auto tariffs
As part of his first round of tariffs levied on Canadian goods in 2025, Trump targeted the country’s auto sector with 25 per cent tariffs on vehicles assembled predominantly in Ontario.
The United States president repeatedly told reporters he wanted to see automakers leave Canada and bring their jobs south of the border.
In Ontario, where tens of thousands of direct and spinoff jobs are attached to the sector, unions and the provincial government have worried about keeping auto assembly in Canada.
As part of the abandoned deal with the United States, Carney said there had been progress on an approach to how to integrate autos that ultimately fell apart.
The prime minister said Saturday the two sides disagreed over “the treatment of Canadian content” in vehicles, while the United States was only willing to agree to a trade deal on cars and would not extend it to medium or heavy vehicles like trucks.
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Excluding heavy vehicles from tariff relief, Carney said, would impact plants like Ford Motor in Oakville — which deals with F-series trucks — or General Motors’ Silverado truck in Oshawa.
Restrictions on Canadian trade deals
Carney also said the United States wanted to include terms in the deal that would put limits on the trade deals Canada was able to seek with other countries.
Since tariffs were first levied on Canadian goods, Ottawa has sought new trade deals with countries around the world, positioning itself as a key “middle power.”
Deals with Indonesia and the United Arab Emirates and talks with India are among the agreements Canada has recently reached, with 20 deals touted by the prime minister’s office.
“The U.S. introduced, in the last hours, efforts to restrict our ability to have other trade deals,” Carney said Saturday.
“We believe in free trade; we’re the partner of choice in many respects for countries around the world, and the Americans wanted to restrict that. They had language that they wanted to restrict. Unacceptable.”
Carney later added that there had also been discussion of the United States encouraging Canada to match its tariffs on other countries.
The prime minister said that, if Canada and the United States shared integrated markets on some goods, that approach could make sense. On steel, for example, he said he would see the “merit” of matching American tariffs on other countries if Canada and the U.S. were trading freely.
“If you do that though, you should have an integrated market,” Carney said.
“In other words, the tariff level that you apply from Canada into the United States — because America wants to tariff everybody on everything — but the tariff level you apply should be clearly the lowest. It shouldn’t be the same as other people. It should clearly be the lowest because you have this added market protection.”
Canadian culture, language rules
The third factor Carney said had derailed trade talks was disagreements over French language rules.
The prime minister offered few details of exactly where the two sides had disagreed but suggested it related, in particular, to French and said those rules would have amounted to a broader attack on Canada.
Later, speaking in French, he said there were “threats” from the United States in the deal over French language and Quebec culture.
Republicans have previously taken aim at Canada’s Online Streaming Act, calling it “discriminatory” and suggesting it should result in additional tariffs.
The Online Streaming Act was passed in 2023 and would empower the Canadian Radio-television and Telecommunications Commission (CRTC) to force large foreign platforms like Netflix and Amazon to pay a portion of their annual Canadian revenues into funds devoted to producing Canadian content.
U.S. streamers and the Motion Picture Association have filed court challenges against the Online Streaming Act, as well as the CRTC’s requirement that those companies disclose financial information in order to ensure the Canadian content funding obligations are met.
The Trump administration also identified the law as a trade irritant ahead of this summer’s scheduled review of CUSMA.
— with files from Global News’ Sean Boynton
Aside from the fact that Carney is demonstrating strength through integrity – something the US’s administration has neither of right now, I have to beat up on a pet peeve:
Canada is IN AMERICA!
The USA is IN AMERICA!
The US is NOT AMERICA… America consists of two continents and an isthmus. Calling the US “America” is equivalent to calling Africa a country. It’s lazy, arrogant, and inaccurate, and it’s time to stop. SMH
No country, including Canada, should take part in any negotiations with the USA until the Trump administration is gone. When are other countries going to learn that Trump is incapable of compromising or honoring his word?
President Trump clearly has no clue how to negotiate with an ally. He is going to screw the pooch, and American citizens will be paying the price for his assine choices.
I do NOT TRUST Carney or the Liberals so I do NOT believe even one word that Carney has said since the trade talks ended. AND remember, EXCEPT IN QUEBEC, EXCEPT IN QUEBEC…that is their CANADIAN MOTO so why would any REAL canadian care what happens to their french language during trade talks with the USA?
As an American, I love my country and normally support my president, BUT – BUT – BUT : if this information is accurate, then my government is negotiating with Canada in bad faith. The points that PM Carney bring up seem reasonable.
I would like to see Canada and America become closer trading partners, making special agreements with each other.
There is no valid reason why a fair deal for both sides can’t be reached.
all the maplemagats bitching about Quebec, go fornicate yourselves. irrespective if Quebec is french first, the French helped create Canada, and Quebec is just as much as Canada as my province is. an attack on Quebec is an attack on all of Canada. magats have ZERO say in the internal runnings of our country.
and no, i do not speak french, but i’m glad to have them in Canada, they have just as much right as any other Canadian does
bo
totally wrong
Canada has 15 active trade agreements covering 51 countries.
the other trade agreements include a mix of broader economic partnerships, security agreements, and international accords signed globally within the last year.
more yank magat stupidity on display…
Hurray to our Prime Minister and to our country. Don’t be bullied by the stupid orange buffoon.
The country is sunk…Alberta out!
“United States was only willing to agree to a trade deal on cars and would not extend it to medium or heavy vehicles like trucks.”
The USA gave Canada a great deal on cars and SUVs but Canada wanted more. They also wanted reduced tariffs on heavy truck that the US companies build in Canada which would take more jobs from the USA.
“[There were] efforts to restrict our protections of our language, our culture, and in effect, our sovereignty,”
The USA asked for relaxed regulations on French language markings on products sold in Canada.
“The U.S. introduced, in the last hours, efforts to restrict our ability to have other trade deals,”
The USA just wanted Canada to quit snuggling up with China.
Elbows up …….pants down taking in the net like a real Canuck. Even if carney lives in the USA
bawana4
Absolutely right!
Those on here don’t want to read and acknowledge everything, accept what they want to read.
@Matthew
Fortunately most Canadian doesn’t really care what you think!
“… the United States wanted to include terms in the deal that would put limits on the trade deals Canada was able to seek with other countries.”
A DEFINITE show stopper. The USA will have no control over who Canada deals with!
The Talks are not really over, YET.
Unless Carney really does not want a trade deal. I think Trump got surprised at just how indifferent the Federal Liberals are to the economic plight of most Canadians. I would say Trump is realizing he got played by the Liberals in their desire to put reciprocal tariffs(taxes) on American goods, all while blaming Trump.
I would say it was the last demand that ‘torpedoed’ the trade talks. Nobody tells the Canadian Federal Liberals what to do. If the Liberals want to bring down Socialist Government onto the backs of Canadians (whether we want it or not), it is none of the Americans business. The fact that Canada is slowly turning into a hard Left Socialist state is just something they will have to live with. Even when the New Canada starts expropriating or chasing out American owned business.
Carney never really wanted a trade deal. He wants to tie into the Socialist E.U.
Further, Carney and friends sees reciprocal tariffs as just another ‘Yummy’ tax he can put on Canadians. All while blaming it on that Trump clown. Win, win.
Now, he calls the next election scaring Canadian sheep into electing him a hard majority so he can get all that legislation (put in but Trudeau) back into play.
Don’t forget about the Carnage Carney did mention about trades with China. …. Poor reporting. That’s what you get stae media funding ($800 Million)
It was interesting to read that the United States buys 99 percent of their copper from Canada, 80 percent of our potash goes to the US and they buy 44 percent of our zinc…not to mention critical minerals like Uranium, Titanium powder and Riobium…American farmers are struggling financially now and will be completely rinsed, paying 50 percent more for potash…I can’t believe what a moron Trump is…
Well Mathew then we are lucky your simple feelings or opinions are not guiding this country during complex negotiations that have wide ranging consequences for Canadians.
I do not care about any of his reasons. They are petty.
I do not want trade deals with terrorist states. I do not want trade deals with China, India or Indonesia.
The auto limitations are better than plant closures.
Still don’t care about dairy and I definitely don’t care about separatist Quebec.
Most legitimate complaint relates to the lack of a truly integrated market – and the effort of the U.S. to impose itself on trade arrangements bewteen Canada and other countries.
But.
The continued irritation of “culture and language” holding Canada back from improving it’s economy is mind-numbing.
Tell Quebec – which we have – they can do whatever they like within their borders, but holding the rest of Canada ransom is getting tedious.
@Bryan Roibeard Pomerleau
“All these bots and trolls commenting think Canadian’s are uneducated morons like our southern neibors 🙄!! You will have to take us by force and let me tell you it will be very very difficult !! We are no push overs and you better be ready to lose millions of American lives !! I say bring it on !! We are tired of you and are ready !!”
You’re enthusiasm is commendable Bud but the reality is that if the U.S. invaded Canada we would roll over faster than Denmark when the Germans crossed the border.Our troops are hard fighters but have no support from the government, which by the way banned the majority of citizens semi automatic rifles which are basically useless in combat but do offer a slight advantage over the muskets we are allowed to have.
No,millions of American lives won’t be lost,the U.S. military will simply cross the border wearing a Crown of Air Superiority and post a flag on Parliament Hill
The three issues wpuld be liberal byelections, Laurentian corruption, and the Liberal compromise by China.
Wow the amount of cash I’m pulling in as a Carney Bootlicker is amazing. I can finally afford to buy that fancy Crackpipe with the Liberal logo on it that is for sale on Temu.I can hardly wait.
Anyone surprised, ANYONE??? Fact! The US says they require nothing from Canada SO lets appease them. No potash, aluminum, steal and metals, prescious metals, lumber and more and US insustries will be shuttering their doors withing weeks and the whole US industrial machine will stall with some never regaining the losses and closing. The US will have NO choice but to bow down to our requests as they are NOT the only market out there and the world knows it.
@Ben
The partisan hack is strong with you….
Keep towing the line with absolute nonsense talking points….
World leaders from other Middle powers have called Carney to congratulate him for showing courage.
Turn off the electricity.
F Trump and his whole twisted Administration. The world hates them. Canada does too!
Glad to see this explanation to the mini MAGA Poilievre conservatives in the comments. Too bad they can’t read.
Carney courageously prevented us from becoming a veritable 51st state. The US wanted to change the auto tariffs, prevent us from trading with anyone else, and wanted us to destroy our culture. Canada is not for sale at that price.
It’s ok to hate carney and his gang of politics leaches for the destruction of Canada, but it’s common sense to blame liberal voters for the destruction of canada
With the deal breaker because of Auto Tariffs, the USA was willing to give Canada a great tariff deal on US cars and SUVs being built in Canada but Canada suddenly demanded that the low tariffs also apply to trucks. That wasn’t in the original deal with Canada, it is like Canada was purposely sabotaging the deal just because political polls should that Canadians though Carney was giving in to the USA.
With the restrictions on trade with other countries, it was only China that the USA was concerned about.
With the French Language the USA asked that products coming into Canada didn’t require package markings in French which would have reduced costs for Canadians. But then Carney doesn’t care about Canadians.
Keep auto jobs in oshawa and oakville.
Davos speech and now this . Carney has some…and now the world knows Canada’s sovereignty is not for sale.
More pain for the middle class…..thanks Carney
@Joe:
“3 little issues”….????
Just phuck off stupid.
“Canadians” is a small group of oople, 60+.
Everyone else has been alienated.
All these bots and trolls commenting think Canadian’s are uneducated morons like our southern neibors 🙄!! You will have to take us by force and let me tell you it will be very very difficult !! We are no push overs and you better be ready to lose millions of American lives !! I say bring it on !! We are tired of you and are ready !!
I’m agree with Ben. Carney is courageous. I am Spanyard and I listen to Ici Première and Globalnews 2 or 3 times a week since Trump came to power. Greetings to all Canadians from Valladolid (¡España! = Spain!)
Hard to believe that such an excellent deal went to a hard no over 3 little issues. There must be more to the story or Carney wouldn’t have to give such vague answers in Libspeak.
One can only guess what he means.
Integrate auto’s?
Language rules?
Trade restrictions? Well that is obviously Chy-na
Canada has been done since 2015…
The Liberals should resign and leave Canada..
The Trump administration has a problem with canada wanting a small portion of canadian content to get funding on American productions like Netflix meanwhile the Trump administration cries when ABC plays Jimmy Kimmel or The View and claims its not fair because they aren’t showcasing Trump favoritism. Complete hypocrites who dont care about rules. Only how it favors them. Pure narcissistic administration
Glad to see we have a courageous Prime Minister who said “no” to becoming a vassal state to the US.
Wow, it feels like I’m hearing about the actual reasons behind these tariffs for the first time. Unacceptable is right.
A good faith deal with the US was never going to be available. Greer is now saying stuff abusers say: they won’t tolerate retaliation from Canada.
Why did Canada have to retaliate?
Look what you made me do to you!
So far, Global News has the best article in this subject. Job well done!
The “ great negotiator” is unable to negotiate
That’s the history of it
Why do you think he bailed and went on vacation?
Incapable Carney
Well Canada we have some “negotiator”, takes a week holiday in Italy when he’s supposed to be negotiating our trade deal. No wonder we’re going down the dumps, to be a Third world country.
I wonder if Global News will post this or throw it to the side like they did to my last comment.
Mr Carney walked away from selfish american demands. That’s courage and a sound decision. America thinking Canadians are going to kow tow, just got pushed back.
Yes, it’s going to be tough going, that’s preferable to subjugation to trump. Buy non-american. Canadians aren’t push-overs. When they want to play fair then Canada will play fair.
The ‘SandBox’ will Never be Emptied
@Numya.
There is no pipelines that fun entirely in Canada on the north side of Lake Superior that go to Sarnia and then east. Carney better start building one.
Carney never wanted a trade deal with the United States. His only plan is to keep Donald Trump as an enemy/opponent of Canada. As long as Carney can depict President Trump as being against Canada, Carney can depend on his voting base to keep him in office. Having a fractured world (which Carney created from the day he was elected) is Carney’s plan for New World Order domination.
The best thing Canada could ever do for itself right now is to get rid of Carney.
Wow your PM has a lot more ba**s then ours do. Go Canada
Wow. Ive gained a new respect for the PM.For now
No deal is better than a bad deal.
Good decision 👏
@ Ali – check the polls. AB and SK do support Canada. Your assertion of a minority opinion does not make it true.
The internet allows any opinion to be presented. They are not all worthy of equal consideration. This one of yours is nonsense.
@Ali. You purport to speak for others yet the Premier of Alberta just said US tried to pull a fast one. Your comments are entirely predictable and appear to be written by Grok.
Mr. Carney is absolutely correct.
Well done indeed.
Kudos to the Canadian team.
@anonymous. Nope. Not accepting a convenient eastern excuse to screw the west. Use oil and gas? Send $15B to Edmonton. Today. Pay for it. All of it. The country is not united. AB and SK do NOT support elbows up.
So the control orangy wanted back fired in his face. Nobody can tell another country who they can trade with. Maybe the idiot needs to have that pounded into his head
Someone in the comments said Trump should go fornicate himself. As a fellow Canadian, I think thats physically impossible. Using the metric system may help explain. The thang is measured in micrometers.
@Joe Peterman
Line 5 is just one of many transit routes for oil going east
The US will never recover from the bad behavior Donald Trump has engaged in for the last several months, Candad needs to cut of the power we send them and close the border until the US can vote in an actual leader instead of a Bullying dictator .Trump and Vance are bothe donkey’s
Good job, Mr. Carney! So glad you are our PM.
I dislike Carney but I think this could be a good move. Trump over played his hand and walking away will hurt Canadians in the short term, but will create immense pressure on Trump leading up to the midterms. Trump may actually have to concede which will give us leverage for a significantly better deal than we had before the talks fell apart.
Fair enough but it’s going to hurt.
@Anoymous. Here is the problem with that. Ontario gets it Oil and Gas, fuel etc from Western Canada thru Enbridge Line 5 that runs thru the USA. Perhaps first, we should build a pipeline into Ontario around Lake Superior to go down to Sarnia and on its way east after that
Totally restrict the natural gas, oil, electricity and resources and see what they say then.
@ Ali – the issue is not about regional favourites. The issue is that a foreign entity can not have any say in Canada’s domestic issues. Merely asking for it is disqualifying.
Trump is not competent to run the US. He certainly is not able to run Canada.
Cater to the laurentian elites? What else is new? And now there’s a sudden demand for ‘unity’ cause no doubt the dollar for dollar tariffs will be applied to oil and gas, and potash. Western Canada to suffer for ON and QC. 100+ years of the grift. No more! AB and SK didn’t vote for this derangement
Bluesky is being promoted here with it’s own sign up link?
@Bo – This story says canada has 20 trade deals.. Totally false” Can you count to 20 without taking of your socks?
@Count of Monte Crisco – “Tell the demented Orange POS to go fornicate with himself!” I’m not sure he will live long enough to be able to do this since there’s already a miles-long lineup of seppies and other MAGATs waiting their turn.
@Anonymous (Aug 22, 3:31pm) – why are you bleating about how poor you are? The family told you to keep your pie-hole shut or be locked in the attic again. Jeezus you’re a s#!t stain on the family name.
One philosophy worth understanding is that the other side of crisis is opportunity, and often very worthy of serious analysis. It might be helpful to include this idea in the discussion. Dr. Carney seems to be well aware of these dimensions…it could be that there are areas worth exploring.
Mr. Carney absolutely did the right thing. The current American administration has proven time and time again that they are 100% unreliable and cannot be trusted. If this deal was signed the American government would have come up with another sanction. It may be long term pain for long term gain but Canada has to stand up to a narcissistic American autocracy. I applaud Mr. Carney and his team for staring down the barrel of an American firing squad. Pour you bourbon down their throats!
The trade deal should include deporting MAGANUK traitors to a MAGA state like Alabama. I won’t accept a trade deal without it. Make it happen Carney.
It was either going to happen by use or trump three months down the line when the deal was done. There are a bunch of other countries thatd be thrilled to build and sell there cars here. The world doesn’t revolve around the united states, even though they think it does.
The 3 reasons?
1 China
2 China
3 China
One wonders why it is so difficult for the world to understand, conclude, admit that it is virtually impossible to negotiate with a regime that has a corrupt, criminal, malignant, narcissistic, psychopathic, senile lunatic.
My cousin’s friend earns $600/day posting anti-Canada comments here.
La question que je me pose est celle-ci. Y-a-t-il eu de véritables négociations de la part de nos voisins du sud ou s’agit-il d’une énorme mascarade visant à faire fluctuer les marchés boursiers favorisant ceux qui savent?
Awesome. Canadians can and will take care of themselves. The NERVE. What else would you expect, trying to horn in on our DEALS with other countries, FU T.R.U.M.P. Mr. Carney did that for Canada…
Cut off the oil! Cut off the electricity! Cut off the potash! Cut off the booze! Cut off the critical minerals!
Tell the demented Orange POS to go fornicate with himself!
Bring in european (German) car and trucks, assembly into Canada, let Ford, GM and Chrysler go. Canada can manufacture military equipment for Europe.
This story says canada has 20 trade deals.. Totally false
Trump and carney must work together, to protect each industry’s future against predators that want to destroy occident.
Karenarny got his bum hole torpedoed?
50% tarriff on canada to protect quebec, which wants to seperate from canada…..
We will sell our potash, Crude oil, and Natural Gas to other nations! NO MORE DISCOUNTS TO USA! The surplus of Hydro will go to other parts of Canada that need it! You done F’ed up PDFILE.
…looks like trump has the russian help posting on here again trying to divide again….nice try maga, fooling no one but yourselves…
So, the USA has said Canada introdueced last minute changes. Carney has said what the USA introduced at the lat minute. Why hasn’t anyone reported on the USA claims that Canada also added new demands so that we can see who is telling the truth. If the USA is lying we need to let that be known.
Quebec has been a boon and thorn to the side of US billionaires. Good job Quebec!
Tabernac
Protection of Quebec Language and Culture? What were the demands from the USA? The fact that American companies open up there don’t want to put up French signs. This seems like poppycock.
So one of the reasons he walked away is to protect that sacred cow Quebec. Now the rest of Canada has to live with 50% tariffs and all the damage and inflation that will result just so Carney and the Liberals can keep their voter base in Quebec. It is an absolute disgrace and Carney should resign forthwith.
So one of the reasons we have to live with 50% tariffs is because Quebecs language and culture has to be protected. Since when is Quebec more important than the rest of Canada.