Here are the statements made by Prime Minister Mark Carney following Canada’s decision to halt trade discussions with the U.S., and the subsequent imposition of 50% tariffs by the Trump administration:
Greetings everyone. I want to provide an update to Canadians on the recent developments in our trade negotiations with the United States. I will outline the reasons for discontinuing negotiations on an unfavorable agreement and discuss our next steps.
(In French): Throughout our history, Canadians have benefited from favorable trade conditions, including a stable relationship with the U.S., increased access to the American market, and mutually understood and respected trade rules. However, these conditions have changed significantly.
While we cannot control the disruptions coming from Washington, we have the ability to strengthen Canada domestically and expand our trade partnerships globally.
We have the power to shape our destiny domestically and be a valuable partner internationally.
Over the past year, Canada has engaged in extensive and sincere negotiations with the U.S. to establish a new comprehensive trade agreement. We have approached the discussions with pragmatism, patience, and persistence, aiming to secure a deal that safeguards Canadian workers, enhances our economy, and upholds our sovereignty.
From the outset, we understood the changing dynamics in the U.S. trade landscape. We anticipated the shift in America’s approach to commercial relationships, including the imposition of tariffs on its allies and using economic ties as leverage. We were aware of the evolving nature of American policies.
Prime Minister Mark Carney elaborated on the decision to halt trade discussions with the U.S. due to the imposition of 50% tariffs by President Trump. Carney emphasized Canada’s commitment to protecting sovereignty and key industries.
Despite the challenges, we strived to reach a fair agreement that would benefit Canadian businesses and workers. Our objective was not just any deal, but one that served the best interests of Canadians, prioritizing quality over haste.
Upon the recent announcement of additional unwarranted tariffs by the U.S., we instructed our negotiators to pursue fair negotiations based on mutual trust. We believe in fostering a successful bilateral relationship that benefits both nations, respecting each other’s sovereignty, leveraging strengths, reducing costs for families, and creating employment opportunities.
While Canada has consistently aimed for enduring partnerships, the U.S. has often focused on short-term gains. The disparity between collaborative efforts and competitive stances has widened recently, leading us to make the decision to recall our negotiators from Washington.
The U.S. has imposed a series of tariffs over the past year that violate our existing agreements, such as CUSMA. Their shifting justifications for these actions range from fentanyl concerns to tech taxes, impacting various sectors. The notion of a trade deficit with Canada has been used to justify tariffs, but this disregards the comprehensive trade balance, where the U.S. benefits significantly.
Trade should strengthen both countries. For instance, Canada is a major consumer of U.S. cars, and our trade balance reflects a surplus in favor of the U.S. in broader