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Home » Transcript: Canadian PM Carney Remarks After US Tariff Talks Collapse

Transcript: Canadian PM Carney Remarks After US Tariff Talks Collapse

EDITOR’S NOTE: In this full press conference from Ottawa (Aug. 22, 2026), Canadian Prime Minister Mark Carney addresses the recent collapse of trade negotiations with the United States. He explains why Canada has suspended talks after finding the latest U.S. proposals unfair and insufficient, while firmly defending national sovereignty. Carney then announces a series of dollar-for-dollar retaliatory tariffs on key American goods, set to take effect after Labour Day, and outlines Canada’s broader strategy to strengthen its economy and diversify global partnerships. Read the full transcript of the remarks below:

Opening Remarks

PRIME MINISTER CARNEY: Okay. Good morning, everyone. I’d like to take this opportunity to update Canadians on developments in our trade negotiations with the United States. I’m going to go through why we’re walking away from a bad deal and what comes next. We can’t control the storm that blows in from Washington.

We can, however, chart a new course by building Canada strong at home and diversifying our trading relationships abroad. For over a year, Canada has worked intensively and in good faith with the United States to negotiate a new comprehensive trade deal. We’ve been pragmatic, patient and persistent. We pursued every opportunity to reach an agreement that protects Canadian workers and their families, that strengthens our economy, and that respects Canadian sovereignty. We’ve been under no illusions.

We recognized from the start that America has changed. Early last year in this room, I observed that the decades long process of steadily increasing integration between our economies was over. Our government understood before many that America would transform all of its commercial relationships, that it would put a series of tariffs on its closest allies and use economic integration as a weapon. We recognize that sometimes its signature was written in pencil. We worked in that context to try to strike a fair deal on which Canadian businesses and workers could rely.

Our goal has always been to get the best deal for Canadians, never a deal at any price or at any time frame. Last month, when the United States announced another round of unjustified tariffs, I gave our negotiating team a new mandate to seek a fair deal negotiated in good faith. Because I believe that people on the ground, on both sides of our border, want this relationship to work. The bonds between Canadians and Americans are long and they remain strong. A mutually beneficial trade agreement is possible.

One that respects our sovereignty. One that builds on our complementary strengths. One that lowers costs for families on both sides of the border. One that creates good jobs for our workers. Canada, Canada has always worked towards these goals even while America’s attention and dedication to them have wavered.

Why Negotiations Broke Down

We’ve consistently proposed long term partnerships, while America has often pursued short term transactions. The gap between partnership and competitor, unfortunately, has remained too wide in recent days. So last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they’ve offered and we will not give what they’ve asked. Over the past year, the US has imposed a series of tariffs that violate its commitment under our agreement with them and Mexico, so-called CUSMA.

The United States has continually changed the rationale for these actions from fentanyl to taxes on U.S. tech giants, to certification of U.S. aircraft, to the sharing of tolls of a bridge that Canada built and paid for, to our dairy policy, to provincial decisions not to sell American alcohol during a trade war, to a television advertisement that quoted Ronald Reagan, to smoke from wildfires while they threatened our communities.

Another prominent justification for US tariffs has been their claim that since the United States runs, quote, a trade deficit with Canada, we were ripping them off. Also a quote. But the US’s narrow merchandise trade deficit only exists because the US buys so much of its energy from Canada. Canada fuels American growth, supplying 99% of their natural gas imports, 85% of their electricity imports, 60% of their crude oil imports. I don’t think they want us to stop sending any of that energy.

And if you look more broadly at the comprehensive U.S./Canada trade balance, which includes the many services from finance to entertainment that we buy from the United States, that shows a persistent American trade surplus. Most fundamentally, trade is about building mutual strength, creating a relationship that benefits both countries. For example, Canada is the largest customer for U.S.

Cars. In fact, we buy more American built cars and trucks than the United Kingdom, Japan and China combined. It’s the same for American steel products. Canada is also the largest customer for 26 US states and a top three customer for 45 US states. Last year, Americans sold almost $600 billion in goods and services to Canadians.

That’s more than $1.6 billion every single day. On the other hand, Canadian exports to the United States lower costs for American families. In contrast, tariffs are taxes. Taxes which are ultimately paid by U.S.

Consumers. While the United States has imposed a seemingly endless stream of tariffs and threatened more, Canada has, by contrast, taken several steps in good faith to try to find compromise and secure a comprehensive deal in the best interests of both Canadians and Americans. Last month, the U.S. announced that effective August 19, it would impose 50% tariffs on a series of industries ranging from hockey equipment to clothing, cement and beer.

The only advantage of this latest threat was that it was a catalyst for more intensive negotiations. Our objectives in these latest talks have been to preserve tariff free access to the U.S. for the vast majority of Canadian businesses. Secondly, to provide greater stability to our trade relationship. Thirdly, to significantly reduce U.S.

Tariffs on our key strategic industries so that Canadian businesses in these sectors would have the best access of any in the world.