Breaking
UKStudent loan scam targets new university students with fake SLC messagesESAnak Krakatoa eruption closes Jakarta airport and affects flightsDEState election in Saxony-Anhalt: AfD leads in polls ahead of CDUTRUSA Hit Iranian Tankers: Statement from CENTCOMRUPutin says talks with Trump envoys were constructive and candidPLSix candidates are running for the mayor of Sobótka in the by-electionsDEPolling stations open in Saxony-Anhalt: Bishop preaches against AfDAUPanthers dominate Wests Tigers in NRL match with strong defence and attackDEMotorcyclist seriously injured in Blaustein accidentRUThe unmanned threat regime has been canceled in the Volgograd regionUKStudent loan scam targets new university students with fake SLC messagesESAnak Krakatoa eruption closes Jakarta airport and affects flightsDEState election in Saxony-Anhalt: AfD leads in polls ahead of CDUTRUSA Hit Iranian Tankers: Statement from CENTCOMRUPutin says talks with Trump envoys were constructive and candidPLSix candidates are running for the mayor of Sobótka in the by-electionsDEPolling stations open in Saxony-Anhalt: Bishop preaches against AfDAUPanthers dominate Wests Tigers in NRL match with strong defence and attackDEMotorcyclist seriously injured in Blaustein accidentRUThe unmanned threat regime has been canceled in the Volgograd region
NewsgatherNewsgather
All StoriesWorldSportsFinanceTechScience
Sign In
All StoriesWorldSportsFinanceTechScienceHealthCultureClimatePoliticsSpace
NewsgatherNewsgather

Real-time global news intelligence. Curated by humans, powered by data.

Sections

All StoriesWorldSportsFinanceTechScience

More

HealthCultureClimatePoliticsSpace

Company

AboutEditorial StandardsAdvertisingCareersPressContact

©️ 2026 Newsgather. A product by All Software 24. All rights reserved.

Privacy PolicyCookie PolicyImprintTerms of UseContent and Editorial PolicyRemoval RequestAdvertising PolicyContact
Back|US-Canada trade tensions reach new high as negotiations collapse
US-Canada trade tensions reach new high as negotiations collapse
Developing
ABC Top Stories·1 hour ago·Politics·2 min read·🇦🇺Australia

US-Canada trade tensions reach new high as negotiations collapse

Quick Look

  • Trade talks between the United States and Canada have collapsed, with both sides expressing deepening tensions over tariffs and sovereignty concerns.
  • Canadian Prime Minister Mark Carney ended negotiations, prompting backlash from US officials and threats of steeper tariffs, while Canadians show strong support for standing firm despite economic risks.

AI-generated summary

Why It Matters

The United States and Canada conduct over $1.2 trillion in annual trade, making their economic relationship one of the largest in the world. Recent negotiations between the two countries have deteriorated amid rising tensions over trade imbalances, tariffs, and sovereignty concerns.

Font size

The United States and Canada do a lot of business together — more than $1.2 trillion each year. In any trade relationship that big, there are bound to be disputes.

But on both sides of their North American border, negotiators cannot recall the atmosphere being this frosty.

"I do think this is a high watermark in terms of some of the tensions between the United States and Canada," said Kelly Ann Shaw.

The trade consultant was deputy assistant for international economic affairs in the first Trump administration.

"My observation is that the Canadian side feels it a lot more acutely. I think Americans are a bit less stressed about the current dynamic than a lot of the Canadians are."

It has been a fortnight since Canadian Prime Minister Mark Carney ended comprehensive trade negotiations with the US, and Canadians are now bracing for what comes next.

Canada is already facing tariffs on key exports such as steel, lumber, and automobiles.

US President Donald Trump is threatening even steeper tariffs starting next year, but for now, Canadians seem willing to risk severe economic consequences.

"I think you're going to see pushback from Canada. And I think Canadians understand that that might involve some economic or other sacrifice," said Kory Teneycke, former communications director for former Conservative prime minister Stephen Harper.

Mr Teneycke said the proposed deal, which included tariffs on vehicles and giving the US a say over Canada's trade deals with other countries, was a non-starter.

"I think Canada would very much like to have a deal with the United States, but a deal, not a rollover, not an attempt to take over the country," he told 7.30

"Not a deal that is completely one-sided, that ends in the elimination of the auto sector in Canada while eliminating tariffs on US vehicles at the same time.

Since the talks ended, the rhetorical temperature has risen in both countries.

White House trade advisor Peter Navarro called previous Canadian negotiators "backstabbing, double-dealing people that you really couldn't trust."

Ontario Premier Doug Ford called Mr Trump "the type of guy in school that would take your lunch money".

Not long after that, Mr Trump signed an order changing the name in the US of Lake Ontario to Lake America.

The lake acts as a water border, with Rochester on the US side and Toronto on the Canadian side.

"As long as that attitude persists, I think that the willingness of Canadians to sit across the table and tolerate that is low."

Canada, a united nation

A recent poll found three-quarters of Canadians approved of Mr Carney's decision to walk away from trade talks.

This past week, Mr Carney's Liberal Party swept three federal by-elections with comfortable margins.

"[The] vast majority of Canadians, including half of those who support the opposition Conservative Party, think he made the right call by walking away from the negotiations," said David Coletto from leading pollster Abacus Data.

Mr Coletto thinks even though the stakes are high, the prime minister can afford to wait before getting back to the negotiating table.

"So many industries rely on the trade that crosses the border," he said.

"But on the other hand, Canadians don't want to feel that their sovereignty is at risk, that the United States is dictating to us the choices we have to make.

"I think it's that emotional resolve that I think is going to give our government more time to hopefully get this resolved."

As for the US perspective, Kelly Ann Shaw said it is not surprising there is a very different version of why talks collapsed.

"The US side tends to think Canada is doing this for political reasons, that they're getting more for sort of walking away from the deal and that it wasn't about substance. So you're seeing the US play back in terms of some of this political theatre."

Are they ever getting back together?

Despite the rhetoric from both sides, Ms Shaw believes there is too much to lose for both countries not to eventually come to an agreement.

"I do think long-term, you have two of the world's largest trading partners, two national security allies, traditionally friends and neighbours with the longest border; they're going to work it out. It's just a matter of timing," she said.

Canadian tourists have been avoiding the US and found warm-weather spots in the Caribbean and Mexico to flee the winter.

And it could still take time for Canadians to buy American liquor once it is back on the shelves in provinces where it is now banned due to the trade war.

Even if the nations do reach a deal, things may not return to what they were, especially for Canadians.

"This has become a divorce, and when you divorce someone you've been with for a long time, there's going to be disruptions and costs associated with it," Mr Coletto said.

What to Watch

AI outlook — possibilities, not facts

  • The United States will implement steeper tariffs on Canadian goods starting next year if no trade agreement is reached.

    Likely · Within months

  • Trade negotiations between the US and Canada will resume within the next few months.

    Possible · Within months

Open Questions

  • ?Will the US impose steeper tariffs on Canadian goods as threatened?
  • ?How long will it take for trade negotiations to resume between the two countries?
  • ?What specific economic sectors in Canada will be most affected by prolonged trade tensions?
  • ?Will Canadian public support for a firm stance against US demands remain strong if economic costs increase?

Related Topics

People
Organizations
Places
Topics
This article was originally published by ABC Top Stories.

Quick Look

  • Trade talks between the United States and Canada have collapsed, with both sides expressing deepening tensions over tariffs and sovereignty concerns.
  • Canadian Prime Minister Mark Carney ended negotiations, prompting backlash from US officials and threats of steeper tariffs, while Canadians show strong support for standing firm despite economic risks.

AI-generated summary

Story signals

News tone
Sensitive
Emotional intensity
High
News value
High
Global impact
Global
Urgency
Developing
Follow-up likelihood
Likely
Relevance window
Weeks

Source & Reliability

Source
ABC Top Stories
Story type
Analysis
Source quality
Full
Published
1 hour ago

Related Stories

More on this topic
Queensland Deputy Premier Confirms Northshore Hamilton Development Will Lack Affordable Housing
Developing·1 hour ago

Queensland Deputy Premier Confirms Northshore Hamilton Development Will Lack Affordable Housing

Queensland Deputy Premier Jarrod Bleijie confirmed that a 13-tower, 2,200-home development on Brisbane's Northshore Hamilton site will not include affordable housing, despite the state's worsening affordability crisis, citing the removal of Labor-era mandates and claiming market-rate sales.

ABC Top Stories
2 min read
Angus Taylor defends Coalition's flag burning ban as necessary to protect national heritage
Developing·3 hours ago

Angus Taylor defends Coalition's flag burning ban as necessary to protect national heritage

Angus Taylor rejected claims the Coalition's plan to criminalise Australian flag burning targets One Nation, stating penalties of up to 12 months imprisonment are needed to stand up for the country. The policy also covers war memorial desecration and enshrines Australia Day in law, requiring a plebiscite to change its date. Critics argue it impinges on free speech and is politically motivated.

Guardian Australia
2 min read
Tasmanian PlanBuild program suffers $6.5 million cost blowout
Developing·3 hours ago

Tasmanian PlanBuild program suffers $6.5 million cost blowout

The Tasmanian government's PlanBuild planning portal has experienced a $6.5 million cost blowout, rising from an original $9.7 million budget to $16.2 million in total spending, with Hobart City Council calling the system 'unfit for purpose' and demanding fee waivers until fixes are made.

ABC Top Stories
2 min read
Labor pledges $550 million for Western Freeway upgrade in Melbourne's outer west
Developing·5 hours ago

Labor pledges $550 million for Western Freeway upgrade in Melbourne's outer west

Premier Ben Carroll announced a $550 million commitment to upgrade Melbourne's Western Freeway between Melton and Caroline Springs, adding to $1 billion in federal funding, with plans for interchange upgrades and a new half interchange to reduce traffic congestion ahead of the November state election.

ABC Top Stories
2 min read
Coalition proposes 80% tobacco excise cut to combat illicit market and reduce smoking rates
Developing·5 hours ago

Coalition proposes 80% tobacco excise cut to combat illicit market and reduce smoking rates

Opposition Leader Angus Taylor and Shadow Home Affairs Minister Jonno Duniam advocate for an 80% cut to tobacco excise to undercut the illegal cigarette market, citing Canada's historical tax cuts and subsequent law enforcement efforts as a model, while asserting legal tobacco prices already match illicit levels and will not increase smoking rates.

ABC Top Stories
2 min read
Coalition proposes simplifying Australia's National Construction Code to build more affordable homes
Developing·8 hours ago

Coalition proposes simplifying Australia's National Construction Code to build more affordable homes

Opposition Leader Angus Taylor and Shadow Housing Minister Andrew Bragg advocate reducing red tape in Australia's National Construction Code to build more basic, affordable homes, arguing current standards are too costly and complex. They propose an 80-90 page 'mandatory core' covering structural safety, with energy efficiency and accessibility as optional extras. Critics warn this could worsen inequality, increase long-term costs, and disadvantage low-income and disabled Australians, while industry groups remain divided on the approach.

ABC Top Stories
2 min read
More on this topic
united states
canada
trade war
united states
Kelly Ann Shaw
Mark Carney
Donald Trump
Kory Teneycke
Abacus Data
White House
Government of Canada
Government of Ontario
United States
Canada
Lake Ontario
Ontario
canada
trade war
tariffs
mark carney
donald trump
kelly ann shaw
united states
united states