Carney rejects Lutnick's claim Canada derailed U.S. trade deal

  • Mark Carney rejected Howard Lutnick's allegation that Canada derailed U.S. trade negotiations.
  • Canada scheduled tariffs of up to 50% on roughly 700 U.S. products for Sept. 8.
  • President Donald Trump warned that conflict with him would damage Canada's economy and politics.

Canadian Prime Minister Mark Carney rejected Commerce Secretary Howard Lutnick's allegation that Canada derailed a nearly completed U.S. trade agreement for domestic political gain, while saying a deal benefiting both countries remains possible. Carney said any future pact must prevent agreed tariff levels on certain goods from being changed, a guarantee he said was missing from talks that broke down before President Donald Trump's Aug. 22 deadline for 50% tariffs on about $20 billion of Canadian imports. Ottawa's response was previously described as dollar-for-dollar duties due Tuesday; the latest report says Canada announced retaliatory tariffs of up to 50% on roughly 700 U.S. products, scheduled for Sept. 8. Lutnick said Canada pursued last-minute relief for medium- and heavy-duty trucks and would change its position after mid-October byelections, claims Carney disputed. Trump then warned that casting him as an enemy would have severe economic and political consequences for Canada. Economist Peter Schiff said the retaliation would be politically popular but economically harmful to Canadian consumers and the wider economy.

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