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Negotiations fail, Canada threatens the US to respond in kind

2026-08-22 09:26:16Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Negotiations fail, Canada threatens the US to respond in kind

Canada has suspended trade negotiations with the United States after talks on a new deal collapsed at the last minute.

Prime Minister Mark Carney said the latest changes proposed by the Trump administration were "unfair" and did not guarantee a credible deal. He warned that Canada would respond to US tariffs with reciprocal measures, "dollar for dollar."

Meanwhile, the US has imposed tariffs of up to 50% on a wide range of Canadian goods, including dairy products, wine, cement, clothing and hockey equipment. The measures come on top of existing tariffs on steel, aluminium, vehicles and lumber.

During the negotiations, both sides had discussed reducing tariffs on Canadian steel and aluminum from 50% to 25%, as well as on vehicles from 25% to 15%.

US Trade Representative Jamieson Greer accused Canada of refusing to finalize the deal and warned that Washington would respond to any counter-tariffs.

American and Canadian companies have called for a deal, warning that higher tariffs could hurt both economies.

The U.S. Chamber of Commerce has warned that the tariffs will increase costs for American families, further disrupt supply chains and put millions of jobs that depend on trade between North American countries at risk.

Canada and the US are among each other's most important trading partners, and companies in both countries have built integrated supply chains for decades, particularly in the automotive, energy, industrial and agricultural sectors.


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