Ottawa [Canada], August 22 (ANI): Trade negotiations between the US and Canada collapsed late Friday night, triggering fresh tariffs. At 12:01 a.m. ET, the US imposed a 50% tariff on nearly $28 billion worth of Canadian imports.Prime Minister Mark Carney immediately pulled Canadian negotiators back to Ottawa, calling Washington’s last-minute demands “unfair and uneconomic.”In a statement posted on X, Carney said Canada will retaliate dollar-for-dollar, matching the $28 billion in levies to protect workers and businesses.”We have recognised from the beginning that America has changed, and that we will not return to our old relationship. Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market,” Carney said.”We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers. Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline,” he added.Carney said that while significant progress had been made in recent weeks towards improving Canada’s position in the trade negotiations, it had not been enough to meet Ottawa’s objectives.”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 said.”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,” he added.Carney further said that the US intends to impose a 50 per cent tariff at midnight on roughly USD 28 billion worth of Canadian goods, adding that Canada would “match those tariffs dollar for dollar” to protect its workers and businesses.”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,” he said.The Canadian Prime Minister said the government’s broader economic strategy was focused on strengthening the domestic economy and diversifying partnerships abroad.He said Canada was advancing nearly USD 500 billion in major infrastructure projects while also working to unlock new export markets for Canadian businesses.”Our existing free trade deals already provide Canada with preferential access to 1.5 billion consumers, and we are on track to double that market access by the end of this year,” Carney said.He further claimed that Canadian economic growth was accelerating and the country was on course to record the second-fastest growth in the G7 over the next two years.”Our economy is creating jobs at four times the rate of the United States. Our exports to non-U.S. markets are on track to double over the next decade. Foreign direct investment in Canada is at its highest level in two decades, running at twice the rate of our nearest G7 competitor,” he said.”Canada now ranks as the most attractive country in the world for infrastructure investment,” Carney added.”Canada has what the world wants. And we will not allow any nation to determine our future. We will set our own course to keep building Canada strong for all,” he said.My statement on Canada-U.S. trade negotiations: pic.twitter.com/65OuQH40ra— Mark Carney (@MarkJCarney) August 22, 2026Meanwhile, Washington hit back, with the US Trade Representative calling it a “missed opportunity for Canada” and accusing Ottawa of walking back commitments and adding new demands. The US said it had offered sector-specific relief in steel, aluminium, autos and lumber.”This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7,” the US Trade Representative said.”Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days,” the US Trade Representative said in a post on X.It also accused Canada of continuing to maintain its “prolonged retaliation” against the United States, including “flat-out prohibitions on certain American goods and services”.”For decades, Canada has enjoyed the most favourable access to the U.S. market of any country. And from the beginning of President Trump’s trade program, Canada has continued to enjoy the best treatment in the world, even after – like China – retaliating against the United States,” it said.The US Trade Representative said that Washington had agreed this week to provide even better treatment to Canada, including significant tariff reductions on steel, aluminium, autos and lumber.”The U.S. offer was also forward-looking, and included a historic economic and national security partnership to cooperate on export controls, combat transhipment, enhance digital trade, and align certain external tariffs,” it said.According to the statement, the offer would have included supply chain coordination on aerospace, complementary actions to address unfair trade practices, critical minerals cooperation, increased enforcement against imports produced with forced labour and the announcement of formal US-Mexico-Canada Agreement (USMCA) negotiations.Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful…— United States Trade Representative (@USTradeRep) August 22, 2026The latest development comes amid growing efforts by countries to diversify trade partnerships in the wake of the Trump administration’s tariff measures.According to a report by Canada’s Office of the Chief Economist on the country’s trade landscape, exports to the US fell 3.7 per cent last year amid global shocks and trade tensions.The decline was offset by an 11.1 per cent increase in exports to non-US markets, which now account for 32.8 per cent, or almost one-third, of Canada’s total exports — the highest share in four decades. (ANI)(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)