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Carney stands up to Trump in trade war
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Canadian PM Mark Carney walked away from US trade talks, rejecting Trump's 'unfair' deal.
The move risks economic pain but tests Canada's resolve against US pressure.
Background
The US and Canada have been locked in a trade war since Trump returned to the White House in January 2025. Tariffs have already hit Canadian steel and auto industries. Carney, elected on a promise to be tough with Trump, rejected a last-minute US offer that would have kept tariffs in place, choosing to stand up to the US despite the economic risks.
How it unfolded
- Jan 2025Trump returns to the White House and targets Canada in trade disputes.
- Aug 22, 2026After days of talks, Carney walks away from negotiations with less than an hour to go before a midnight deadline for new US tariffs.
- Aug 22, 2026Canada vows to match US tariffs 'dollar for dollar' after talks collapse.
- Aug 23, 2026Carney says a 'mutually beneficial trade agreement' is still possible, but insists Canada has its 'house in order'.
Who’s saying what
- Official
- Carney says the US made 'unfair' last-minute changes that called into question the reliability of any deal.
- Public
- A poll found 56% of Canadians want a 'hard line' with no more concessions to Washington.
- Analysts
- RBC analysts say the new US duties affect only 5.5% of Canadian exports, but the economic cost is real.
- Support
- Manitoba premier Wab Kinew said the federal government should 'fight' Trump.
Still unverified
JD Vance reportedly mocked Carney for trying to 'out-tough' Trump, but this is from a single report and not confirmed.