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Canada has rejected a proposed trade agreement with the United States after Washington introduced a series of last-minute demands that Ottawa deemed one-sided, according to a report by The Globe and Mail.
Canadian Prime Minister Mark Carney said he suspended trade talks with Washington after the terms shifted, calling the changes unfair and economically unsound and saying they raised doubts about whether any agreement with the US could be considered reliable. Carney said the proposed framework failed to protect Canadian interests and pledged to impose dollar-for-dollar retaliatory tariffs beginning Sept. 8.
The Globe and Mail, citing unnamed sources, reported that a major point of friction was steel trade. US negotiators sought a 4-million-tonne quota on Canadian steel exports paired with a 25% tariff, with that rate set to double on any volume exceeding the cap.
In the automotive sector, US negotiators reportedly wanted only American-made content exempted from duties, while pressing Canada to drop all retaliatory measures targeting US steel and vehicles.
Washington also insisted that Canadian provincial governments end retaliatory bans on American alcohol, and sought to exclude forestry from the deal altogether, despite Canada's position that the sector needed to be included.
The US also pushed for changes to policies inside Canada's own jurisdiction, according to the report. Demands reportedly included an overhaul of Canada's dairy supply-management licensing system and an end to provincial "Buy Canadian" procurement rules.
In Quebec, Premier Christine Frechette said US officials sought concessions on the province's French-language cultural laws, including requirements covering appliance instruction manuals.
The proposed deal also linked trade to national security matters, including Canada's purchase of F-35 fighter jets and its involvement in the "Golden Dome" missile defense system. US negotiators additionally sought tighter regulation of Canadian oil exports and closer coordination on critical minerals, the report said.
US Trade Representative Jamieson Greer accused Ottawa of upsetting the balance of the negotiations through what he described as "walk backs." Carney, for his part, accused Washington of using new tariffs to hurt and divide Canada, describing the measures as a miscalculation.
US President Donald Trump, writing Sunday on his Truth Social platform, said Canada "wants the benefits of being a State, without being one."
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