Canada-U.S. Trade Talks Stall as Countertariffs Loom

Canada’s trade ministry announced that no negotiations will take place over the Labour Day weekend and that Ottawa will move forward with retaliatory tariffs on roughly $28 billion of U.S. imports in early September. The measures will cover a wide range of goods, from steel and aluminum to textiles, dairy products and household appliances. U.S. officials have warned that they could respond with additional restrictions on Canadian alcohol, dairy and possibly steel.

The Globe and Mail (Toronto)

The current standoff follows President Donald Trump’s imposition of 50 percent levies on $28 billion of Canadian goods last month after trade talks collapsed at the eleventh hour. Those tariffs join earlier U.S. duties on automobiles, steel and aluminum that have been in place since the previous year. Canada’s exports to the United States account for about two-thirds of its total trade, while the U.S. recorded a $48 billion goods trade deficit with Canada last year.

The Globe and Mail (Toronto)

Trade Minister Dominic LeBlanc reiterated to business leaders that the government will proceed with the countertariffs as scheduled and that talks are not expected to resume before the tariffs take effect. U.S. House Speaker Mike Johnson expressed confidence that the dispute will ultimately be resolved through a negotiated deal. Canada-U.S. relations adviser Brian Clow suggested the tariffs could pressure Washington to return to the table, noting that past heated exchanges have still produced agreements.

The Globe and Mail (Toronto)

• “All we have to do to cut our trade deficit with a country is not trade with them. Canada is one. If we don’t do any trading with Canada, we just end all trade with Canada, we’d save ourself $90-billion,” — Mr. Trump, president

The Globe and Mail (Toronto)

• “I’ve had a couple of texts and I’ve had some outreach from them but we haven’t had negotiations since then,” — Mr. Greer

The Globe and Mail (Toronto)

• “It’s a little bit in Canada’s corner. We offered them the best deal, they looked at it square in the face, and turned around.” — White House, of Representatives Speaker Mike Johnson, meanwhile

The Globe and Mail (Toronto)

• “There were a lot of heated phone calls, we were on the receiving end of numerous insults, but ultimately, we were back at the table negotiating by the end of August and we got to a deal in September,” — Mr. Clow

The Globe and Mail (Toronto)

These statements capture the stark positions of both governments and the view that, despite current tensions, a negotiated settlement remains possible.

The Globe and Mail (Toronto)