Carney pulls Canada from US trade talks, hits back with tariffs

Canadian Prime Minister Mark Carney withdrew from trade negotiations with the US, citing threats to Canadian sovereignty and culture, and announced retaliatory tariffs effective September 8. The breakdown follows US demands on French language protections and auto industry concessions. Washington imposed 50% tariffs on $20 billion of Canadian goods, prompting Carney's "dollar-for-dollar" retaliation ahead of November's US midterm elections. Canada is the US's largest trading partner, though more dependent on US trade than vice versa. Economists estimate potential losses of 90,000 Canadian jobs if tariffs persist, while Trump threatens expanded tariffs in January 2027.