Trade Representative: Canada misses opportunity to partner with US

The United States has accused Canada of walking away from a proposed trade agreement after last-minute disagreements disrupted negotiations between the two countries.

“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week,” the United States Trade Representative said in a statement posted on X, Caliber.Az reports. 

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, 2026

The U.S. said its offer would have given Canada “the best treatment of any major exporter to our market,” including significant tariff reductions on steel, aluminium, automobiles and lumber.

However, Washington said new Canadian demands and changes to previously agreed commitments had disrupted the balance reached during negotiations. It also criticised Canada for maintaining retaliatory measures against U.S. goods and services.

The proposed agreement would also have included cooperation on export controls, measures against transhipment, digital trade and external tariffs, as well as coordination on aerospace supply chains and critical minerals. Washington said the deal would also have strengthened enforcement against goods produced using forced labour and paved the way for formal negotiations on the U.S.-Mexico-Canada Agreement (USMCA).

“This is a missed opportunity for Canada to partner with the United States, which is the fastest growing economy in the G7,” the U.S. Trade Representative said.

The statement followed Canada’s decision to suspend trade negotiations shortly before an August 21 deadline. Prime Minister Mark Carney said last-minute changes to the U.S. proposal were unacceptable and announced that Canada would respond with reciprocal tariffs on U.S. goods “dollar for dollar.”

A new wave of U.S. tariffs on a wide range of Canadian goods took effect on August 22 following the breakdown in talks.

By Sabina Mammadli