Canada Abandons Trade Talks with US Citing 'Bad Deal'

Mark Carney, the Prime Minister of Canada, announced on August 22, 2026, that his government would be walking away from trade talks with the United States. Carney cited a 'bad deal' and stated that the US had imposed a series of tariffs that violate its commitment under their agreement with Mexico.

The Canadian government had been working to negotiate a new comprehensive trade deal for over a year, but ultimately decided it was not in Canada's best interest. Carney emphasized that Canada cannot control the 'storm' coming from Washington and must chart a new course by building a strong economy at home and diversifying its trading relationships abroad.

Carney pointed out that the US has imposed tariffs on various industries, including hockey equipment, clothing, cement, and beer. He noted that these tariffs are taxes paid by US consumers and that Canada's exports to the US lower costs for American families.