Carney Stands Up to Trump in U.S.-Canada Trade War
New York Times
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New York Times
Original Source
Canadian Prime Minister Mark Carney walked away from U.S. trade negotiations just before a midnight deadline, defying President Trump's tariff demands. He pledged to impose retaliatory tariffs on American goods dollar-for-dollar, making Canada the first major U.S. ally to openly resist the administration's trade agenda despite significant economic risks.
Carney Stands Up to Trump in U.S.-Canada Trade War - The New York Times
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Carney Stands Up to Trump in Trade War Despite the Risks
Canada’s prime minister walked away from what he thought was a bad trade deal with the United States. Many Canadians are behind him, but it will be costly.
Listen · 5:43 min
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!Prime Minister Mark Carney, wearing a blue shirt and blazer, speaks into a microphone as he gestures with one hand.
*Prime Minister Mark Carney of Canada said his country would retaliate against U.S. tariffs “dollar for dollar.”
Credit...
Sammy Kogan/The Canadian Press, via Associated Press*
By
Matina Stevis-Gridneff
Reporting from Toronto
Aug. 22, 2026
Updated 9:35 a.m. ET
On Friday night, Prime Minister Mark Carney of Canada did something that few other world leaders before him have dared to do.
After days of intense trade negotiations with the United States, with less than an hour to go on a midnight deadline for a new round of tariffs from the Trump administration, Mr. Carney instructed his negotiators to walk away.
Then, he announced that once 50 percent tariffs came into effect on $20 billion worth of Canadian goods, he would order retaliatory tariffs on the United States “dollar for dollar.”
In a statement, Mr. Carney said he had gone into the trade talks in good faith, seeking “the best deal for Canadians” but “never a deal at any price or on any deadline.”
By walking away, Mr. Carney chose a road that no major U.S. ally has taken: With his country’s economy on the line, he stood up to President Trump and refused to accept the administration’s offer of a new trade relationship with tariffs permanently baked in. Britain, the European Union and other major U.S. trading partners have agreed to smaller deals that have been volatile and often left them worse off.
The collapse of the talks came after Mr. Trump declared on Tuesday that the deal was practically done.
Matina Stevis-Gridneff
is the Canada bureau chief for The Times, leading coverage of the country.