Trump’s Tariffs Slammed as ‘Miscalculation’ by Top Adviser, Sparking G

Trade Talks Collapse: Trump's Tariffs Slammed as 'Miscalculation' by Top Adviser

Prime Minister Mark Carney of Canada has slammed US President Donald Trump's tariffs as a "miscalculation" after trade talks collapsed on Friday. The collapse of the trade talks upends a deeply integrated trading relationship between two allies, with no clear path to resolution.

Trade War Escalation

Canada has been hit with new 50% US tariffs on a range of Canadian goods, in addition to existing US tariffs on Canadian steel, aluminium, automobiles, and lumber. The new tariffs cover about $20bn (£15bn; C$28bn) of Canadian imports, or about 5% in total, including wine, dairy, cement, clothing, and hockey equipment. Prime Minister Carney said Canada was retaliating "reluctantly" to protect its interests.

US Negotiators' Rebuttal

US trade representative Jamieson Greer told Fox News that there were no plans to resume talks. Greer also stated that the US had been prepared to cut some of its tariffs on Canada as part of the ill-fated deal. However, Carney rejected the assertion that Canada had made last-minute requests, saying: "We clarified what was on offer and were continually disappointed by the answers."

Leaders Weigh In

Leaders of other federal parties in Canada, including the Conservative opposition, voiced support for Prime Minister Carney. The leaders of some Canadian provinces also backed Carney's stance. British Columbia Premier David Eby said the US demand for restrictions on Canada's ability to have other trade deals "would reduce us to the economic equivalent of the 51st state." He added, "It was never acceptable to Canadians."

The Way Forward

The collapse of the trade talks comes after more than a year of on-again, off-again negotiations. The two countries were engaged in a mandatory review of an existing North American free trade agreement, known as USMCA, with Mexico. Prime Minister Carney said the trade talk collapse was "certainly not good news" for the North American free trade pact, which underpins $1.6tn (£1.2tn) in annual trilateral trade across Canada, the US, and Mexico.

Source: JOY