Carney calls Trump's fresh tariffs a 'miscalculation' after trade talks collapse

What the report says

Canada’s Prime Minister Mark Carney said the latest US tariffs on Canadian goods amount to a “miscalculation” after trade negotiations collapsed late on Friday. In remarks reported by BBC World News, Carney said Canada left the table because it would not “compromise” its sovereignty, and argued that the Americans had asked for too much while offering too little.

According to the BBC, the breakdown came after both sides had sounded optimistic earlier in the week. Each government then accused the other of making late changes to a draft deal. Carney delivered his first public address on the dispute on Saturday morning, saying Canada had acted reluctantly but felt compelled to protect its interests.

The new US measures include 50% tariffs on a range of Canadian products, added on top of existing American duties on steel, aluminium, automobiles and lumber. In response, Carney said Canada will impose matching tariffs dollar-for-dollar from 8 September, including on steel, dairy, appliances and electronics, with further details to follow.

The dispute matters because it reopens trade tensions between two closely linked economies and could affect major sectors on both sides of the border. As reported by the BBC, Donald Trump had not commented by the time of publication.