Canada is delaying a return to US trade talks; Prime Minister Carney and his
cabinet have focused on deepening ties with other countries and domestic
infrastructure spending while avoiding commitments on retaliatory tariffs. Polls
show broad public support for rejecting a bad deal and for retaliatory measures;
some Canadians back export taxes to raise prices of oil, gas and electricity
exported to the US. Domestic opposition to compromise is constraining Carney and
complicating any restart of negotiations, says University of Toronto’s Andrew
MacDougall. Carney and officials say talks collapsed over US demands including
tariffs on steel, aluminum and autos that would leave those sectors
uncompetitive; a requirement that Canada accept tariffs applying to goods from a
US FTA partner; changes to Canadian cultural and French‑language protections;
and aligning Canada’s trade policy with Trump’s positions. Carney called those
demands fundamentally unacceptable; US officials dispute parts of Canada’s
account but say Trump will not grant tariff exemptions.
