Mark Carney suspends US trade talks and announces retaliatory tariffs

Canadian Prime Minister Mark Carney suspended trade negotiations with the United States late Friday, blaming “unfair” last-minute changes to Washington’s proposed terms and announcing retaliatory tariffs against the U.S.

Carney said the move comes as President Donald Trump‘s 50% tariffs on roughly $28 billion in Canadian goods were set to take effect at midnight.

The breakdown came just days after Trump paused the 50% tariffs for three days and announced that the U.S. and Canada, subject to final documentation, had reached a “DEAL!”

While Carney said progress had been made in recent weeks toward improving Canada’s position and reaching an agreement with the U.S., he said the two sides ultimately could not finalize a deal.

TRUMP PAUSES 50% TARIFFS ON CANADA HOURS BEFORE DEADLINE AFTER ANNOUNCING POTENTIAL DEAL

Canadian Prime Minister Mark Carney greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders’ Summit on June 16, 2025, in Kananaskis, Alberta.  (Chip Somodevilla/Getty Images / Getty Images)

“However, that progress has not been enough to meet our objectives for Canadians,” Carney said in a statement.

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” he continued. “They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute. However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

Carney said Canada would retaliate by matching the U.S. tariffs.

US, CANADA STRIKE DEAL TO OPEN BRIDGE LINKING DETROIT AND WINDSOR AFTER DISPUTE DELAYED LAUNCH

President Donald Trump meets with Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, on June 16, 2025. (Reuters/Kevin Lamarque / Reuters)

“At midnight tonight, the U.S. intends to impose a 50% tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses,” he said.

“In the coming days, the government will introduce additional measures to support Canadian workers and businesses, building on the nearly $25 billion in support provided over the past 18 months,” Carney added.

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U.S. Trade Representative Jamieson Greer said Canada had declined to finalize the trade deal, Reuters reported.

FOX Business has reached out to Greer’s office.

This is a developing story. Check back for updates.