Carney’s ‘No Deal Is Better Than a Bad Deal’ Doctrine Faces Its First Test

Canadian Prime Minister Mark Carney walked away from last-minute trade negotiations with the U.S. on Friday, allowing 50% tariffs on $20 billion of Canadian goods to take effect and vowing dollar-for-dollar retaliation. Carney rejected the deal, citing unfair 11th-hour changes, and stated "no deal is better than a bad one." His stance has broad public and political support, with over 75% of Canadians approving his decision despite economic concerns. The new tariffs target about 5% of Canada's U.S. exports, impacting plastics, chemicals, and forest products. Economists warn the dispute will further damage business confidence and hurt small exporters, while Canada's retaliatory tariffs take effect September 8.