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Full Breakdown

Trade Negotiation Collapse Between the United States and Canada

9/10/2026, 6:07:46 AM

Core Event: Breakdown of Bilateral Talks

Former U.S. ambassador to Canada David L. Cohen (served 2021-2025) told Fox News Digital that the Trump administration’s “hard-line trade pressure” pushed Ottawa to explore broader deals with China. He added that the latest round of U.S.–Canada negotiations collapsed after the parties could not resolve disputes, notably over Canada’s tariff-rate quota system that U.S. dairy farmers deem unfair.

Background & Context

Cohen praised the United States-Mexico-Canada Agreement (USMCA) as a “terrific deal” that improved continental trade, contrasting it with the earlier North American Free Trade Agreement (NAFTA). He noted that the USMCA was a substantive achievement of the Trump administration, even if the president’s rhetoric was sometimes “off-putting.” The current impasse follows months of escalating tension, including U.S.

Official Statements & Responses

  • Mark Carney warned that U.S. “The most fundamental issue is that the cumulative U.S. demands revealed that they wanted us to become even more reliant on them, not less,” — Mark Carney, canadian prime minister
  • “They treat Chinese goods more fairly than they do the goods that come from the people of Maine: It’s insanity,” — Vance, vice president
  • “Friday at 4 o'clock, the Canadians call: They start adding crazy ideas to the mix,” — Howard Lutnick, said commerce secretary

Cohen emphasized that professional negotiators such as U.S. Trade Representative Jamieson Greer and their Canadian counterparts had previously managed “civil relationships” and could still resolve “really difficult substantive issues” if they returned to private-room talks.

Verbatim Quotes

  • “demands revealed that they wanted us to become even more reliant on them, not less," Carney said.” — Mark Carney, Canadian Prime Minister
  • “They treat Chinese goods more fairly than they do the goods that come from the people of Maine: It’s insanity," Vance said.” — JD Vance, Vice President
  • “TRUMP TRADE CHIEF REVEALS WHAT PRECEDED CANADA WALKING AWAY FROM 'BEST DEAL IN THE WORLD' "Friday at 4 o'clock, the Canadians call: They start adding crazy ideas to the mix," Lutnick said recently.” — Howard Lutnick, Commerce Secretary

The episode underscores how divergent trade philosophies and political pressures can derail negotiations, leaving both nations to rely on “But when professional negotiators were in the room, they seemed to have been making a lot of progress.” to restore a functional partnership.