Carney Rejects US Trade Deal, Vows Tariffs Up to 50% Over 11th-Hour Demands
Updated
Updated · CNN · Aug 29
Carney Rejects US Trade Deal, Vows Tariffs Up to 50% Over 11th-Hour Demands
3 articles · Updated · CNN · Aug 29
Summary
Mark Carney walked away from a US trade deal after Trump officials inserted late demands that would have constrained Canada’s ability to strike agreements with other countries.
Up to 50% tariffs are now on the table, with Carney promising dollar-for-dollar retaliation and calling the revised US terms uneconomic, unfair and unreliable.
Howard Lutnick’s late intervention became a flashpoint because he opposed provisions that would have sharply reduced US tariffs on Canadian steel, aluminum and auto imports.
Trump aides have since accused Carney of politicizing the dispute, but the standoff has boosted his support at home as Canadians rally behind a tougher line.
The bigger risk is economic: a prolonged fight with Canada’s largest trading partner could trigger layoffs, bankruptcies and a political backlash if tariff damage spreads.
With a rarely used 1930 law sparking a $20 billion trade war, could this unprecedented clash permanently dismantle North American economic integration?
As Canada absorbs severe economic pain to protect its sovereignty, will this high-stakes tariff standoff redefine how middle powers resist global superpowers?