US-Canada trade talks collapse into tariff war

U.S.-Canada trade negotiations collapsed Friday night, triggering an all-out trade war after Prime Minister Mark Carney rejected the final U.S. offer and ordered his negotiators home. President Donald Trump subsequently vowed to raise tariffs on Canadian cars, trucks, car parts and steel to 50% starting Jan. 1. The talks broke down over fundamental disagreements on multiple fronts, including U.S. demands to dictate Canada's steel tariffs on other countries, review its future trade agreements, and repeal a law promoting French-language online content. Canada insisted on more generous treatment for its autos and electric vehicles, and ultimately backed away from an offer to revive the Keystone XL pipeline. Commerce Secretary Howard Lutnick took a hard line on metals and autos, intervening to block lower tariff rates that Canadian negotiators had sought. Carney, who called the U.S. attitude that Canada is a "subsidiary" unacceptable, is expected to announce retaliation tariffs. The collapse ended a month of talks that had shown steady progress, with both sides' red lines so far apart that major concessions, particularly by Canada, would have been required for a deal.