Trump says Canada wants 'benefits' of being US state as Carney says countries in trade war

ByNadine Yousif Senior Canada reporter, Reporting fromToronto.

Key points

• The pact was signed by Trump during his first term to replace the 1994 North American Free Trade Agreement.
• Doug Ford, the leader of Canada's most populous province Ontario, backed Carney and remarked Trump "can't be trusted".
• On Saturday, US trade representative Jamieson Greer informed Fox News there were no aims to resume discussions.
• Alberta Premier Danielle Smith, whose oil-rich province has worked to create inroads with the Trump administration, called on both sides to resume discussions.
• Earlier this summer, Canada and Mexico had formally requested for USMCA to be renewed for another 16 years.

After trade negotiations collapsed late on Friday, prime Minister Mark Carney has remarked a fresh wave of US tariffs on Canada is a "miscalculation" designed to "hurt and divide us".

"They asked too much and they offered too little, " Carney remarked on Saturday, adding that that the US and Canada were now in a trade "war". "You're at war when you obtain attacked. We obtained attacked, " he stated.

In practice, the prime minister confirmed he would match US tariffs "dollar-for-dollar" from 8 September, including levies on steel, dairy, appliances and electronics.

Notably, the collapse of the trade discussions upends a deeply integrated trading relationship, with no clear path to resolution. US President Donald Trump has yet to comment.

"We cannot accept what they've offered, and we will not give what they've asked, " Carney remarked.

Both countries were optimistic of a accord earlier in the week, but negotiations fell apart after both sides accused the other of making last-minute changes.

Now that discussions have broken down, Canada has been hit with new 50% US tariffs on a range of Canadian goods, along with existing US tariffs on Canadian steel, aluminium, automobiles and lumber.

Notably, the new tariffs are limited in scope, covering regarding $20bn (£15bn; C$28bn) of Canadian imports, or concerning 5% in total, including wine, dairy, cement, clothing and hockey equipment.

Meanwhile, the prime minister remarked Canada was retaliating "reluctantly" to protect its interests. Details of the counter-measures will be published over the next few days, he stated.

As have the leaders of some Canadian provinces, leaders of other federal parties in Canada, including the Conservative opposition, voiced backing for the prime minister.

Tariffs – a tax placed on imports from other countries – have been a key component of Trump's trade policy, with the US president arguing they will boost American manufacturing and create jobs at home.

Critics, nevertheless, say tariffs have raised costs for American consumers and have disrupted and damaged the global economy. Carney faces crucial test after walking away from Trump's accord.

Carney's speech on Saturday was his first address to Canadians after he confirmed late on Friday night that a agreement would not be reached, accusing the Americans of making "last-minute changes" that were "unfair" and "uneconomic".

US negotiators, meanwhile, accused Canada of making "new demands and walk backs" on terms which had been previously agreed.

He continued that the US had been prepared to cut some of its tariffs on Canada as part of the ill-fated agreement.

Carney, nevertheless, stated the US presented "unacceptable" terms that were too restrictive, including curbing Canada's ability to strike new trade deals with other countries.

He additionally rejected the assertion that Canada had produced last-minute requests: "We clarified what was on offer and were continually disappointed by the answers."

British Columbia Premier David Eby remarked the US demand for restrictions on Canada's ability to have other trade deals "would reduce us to the economic equivalent of the 51st state". "It was never acceptable to Canadians, " Eby remarked.

In practice, the Conservative opposition leader Pierre Poilievre additionally appeared to backing Carney, calling the latest US levies "unjustified".

Quebec's premier, Christine Fréchette, cautioned jobs would probable be lost since of the new US tariffs.

"Behind these numbers are real people, " she remarked, vowing to introduce measures to backing impacted sectors.

In practice, the collapse comes after more than a year of on-again, off-again trade discussions. It intensified in recent weeks after a US-imposed deadline to strike a agreement or face further tariffs.

For context, the two countries were additionally engaged in a mandatory review of an existing North American free trade agreement, known as USMCA, with Mexico.

Meanwhile, the pact was signed by Trump during his first term to replace the 1994 North American Free Trade Agreement. It underpins $1.6tn (£1.2tn) in annual trilateral trade throughout Canada, the US and Mexico.

Earlier this summer, Canada and Mexico had formally requested for USMCA to be renewed for another 16 years. The US, nevertheless, declined to renew it in its current form.

Asked how Friday's trade talk collapse would impact the North American free trade pact, Carney remarked it was "certainly not good news".

In short, trump says Canada wants ' benefits' of being US state as Carney says is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.