The United States and Canada did not ultimately agree to a trade deal to avoid tariffs, Canadian Prime Minister Mark Carney and the Untied States Trade Representative announced overnight.
"Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week. Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days," the USTR office posted.
"In addition, Canada is continuing to maintain its prolonged retaliation against the United States, including, among other things, flat-out prohibitions on certain American goods and services," the office added.
Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.
— United States Trade Representative (@USTradeRep) August 22, 2026
Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful…
Carney said in a statement that there’s been “important progress toward improving Canada’s position as having the best deal in the world with the U.S.”
The prime minister said that he is going to “suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa.” He cited “last-minute changes” on the American side that he says are “unfair, uneconomic and called into question the reliability of any deal.”
My statement on Canada-U.S. trade negotiations: pic.twitter.com/65OuQH40ra
— Mark Carney (@MarkJCarney) August 22, 2026
This move now lets the 50 percent tariff on many Canadian goods to go into effect, and Canada says it “will match those tariffs dollar for dollar to protect our workers and businesses.”
Earlier this week, President Donald Trump signaled there was a deal in the works, but it needed to be finalized.
“I have paused the 50 percent Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump posted to Truth Social on Tuesday.
“The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!” the president continued.
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