
US Trade Representative Jamieson Greer on Monday (August 24) blamed Canada for the collapse of trade negotiations between the two countries, saying Ottawa changed its demands at the last minute after both sides had made significant progress toward an agreement.
Greer's comments came after trade talks between the United States and Canada broke down last week, raising fresh uncertainty over the future of economic relations between the two neighboring countries.
Speaking to CNBC, Greer said negotiators had reached broad agreement by Tuesday night and believed they were close enough to announce a deal.
Quick answers to key questions
The collapse was attributed to Canada changing its demands last minute, despite significant progress being made in negotiations, according to US Trade Representative Jamieson Greer.
Canada announced retaliatory tariffs in response to the US imposing 50% tariffs on approximately $20 billion worth of Canadian goods, asserting the need to protect Canadian industries and workers.
The Canadian retaliatory tariffs will target various US products including steel, dairy, and electronics, and are set to match the new US tariffs dollar for dollar.
The US tariffs affect numerous industries, including automotive, steel, aluminum, lumber, and dairy, costing Canada approximately $20 billion in exports.
Canadian Prime Minister Mark Carney believed the proposed terms were unfair and uneconomic, thus opting to walk away rather than accept a deal that could undermine Canada's sovereignty.
“We progressed to a point Tuesday night where we had enough agreement among the parties to announce that we had we had found the way to a deal,” Greer said.
According to Greer, the two sides then shifted their focus to finalizing the agreement.
However, he said Canada subsequently sought additional concessions.
“Then we set about to finalize it, and then in the last hours, I think there were things that the Canadians just — you know, they wanted more,” Greer said.
Greer's account contrasts with the explanation offered by Canadian prime minister, who have accused Washington of introducing new demands late in the negotiations.
“In recent days, the U.S. proposed new terms that were uneconomic, unfair, and undermined the net benefits to Canada, calling into question the reliability of any deal,” Carney said.
He added: “We cannot accept what they have offered, and we will not give what they have asked.”
According to Carney, the US proposals also included restrictions affecting Canada's ability to establish new trade agreements with other countries.
The competing accounts have left the two sides at an impasse, with Washington blaming Ottawa for demanding more and Canada accusing the Trump administration of changing the terms at the last moment.
Following the collapse of the talks, Carney announced that Canada would impose retaliatory tariffs on a range of US products.
The new measures will take effect on September 8 and will target products including US steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
“Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said.
The measures represent another escalation in a trade dispute between two of the world's largest trading partners.
Carney used strong language when describing Canada's response to the US tariffs.
“You're at war when you get attacked. We got attacked,” he said when asked whether Canada was engaged in a trade war with the United States.
Canada's latest tariffs come after new 50% US tariffs were imposed on a range of Canadian goods.
The US measures affect roughly $20 billion worth of Canadian exports, equivalent to about 5.5% of Canada's exports to the United States, according to the figures cited in the report.
Affected products include wine, furniture, dairy products, cement, clothing, fishing equipment and hockey equipment.
US President Donald Trump responded to Carney's decision in a post on Truth Social.
“Canada wants the benefits of being a State, without being one!!!” Trump wrote.
He also accused Canada of imposing high tariffs on American farmers for years.
“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” Trump added.
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