Trump says Canada wants 'benefit' of U.S. state without being one as trade war escalates

RELATED: Canada to retaliate after US tariff talks collapse

U.S. President Donald Trump appeared to revive his “51st state” rhetoric early Sunday as he made his first comments on the collapse of trade talks between Canada and the United States.

“Canada wants the benefits of being a State, without being one!!!” Trump wrote in a post on his social platform Truth Social. “They have charged our great farmers, for many years, massive amounts of Tariffs. No more!!! President DJT.”

On Friday, Trump expressed confidence a deal would be reached before the deadline for the talks, which he had extended earlier in the week to Saturday.

Hours later, Prime Minister Mark Carney called back his negotiators from Washington, D.C. and said Canada would match Trump’s 50 per cent tariffs “dollar-for-dollar” in industries such as steel and dairy.

“We cannot accept what they’ve offered, and we will not give what they asked,” Carney said.

In a readout from the prime minister’s office, Carney said the retaliatory tariffs would take effect on Sept. 8, the Tuesday after Labour Day.

The details of what was offered or asked for at the 11th hour by either side has been relatively limited, but on Saturday Carney outlined three issues he said torpedoed the negotiations.

The prime minister said while there had been progress on an approach to auto tariffs, medium and heavy vehicles like trucks were not included.

Carney said the U.S. was only willing to agree to a trade deal on cars and would not extend it to larger vehicles, which would impact plants like Ford Motor in Oakville.

A source with direct knowledge of the talks told Global News the U.S. could cut steel and aluminum tariffs from 50 to 25 per cent and auto duties from 25 to 15 per cent, with two sources saying softwood lumber was also being discussed.

Carney’s decision to walk away from the table also centred around the U.S. wanting to include terms that would put limits on trade deals Canada could seek with other countries.

The condition may have jeopardized recent deals with Indonesia and the United Arab Emirates, as well as talks with India. The prime minister’s office has touted Carney’s record on trade, saying his leadership group has made 20 deals since the Liberal Party formed a government in the spring of 2025.

“We believe in free trade; we’re the partner of choice in many respects for countries around the world, and the Americans wanted to restrict that. They had language that they wanted to restrict. Unacceptable,” Carney said Saturday.

French language rules were the third factor to derail talks, with Carney saying in French there were “threats” from the U.S. in the deal over French language and Quebec culture, though he did not elaborate much further.

The prime minister chaired a meeting of Canada’s premiers on Saturday, with a readout from the PMO saying he outlined next steps to protect Canada’s interests — including the Sept. 8 date for retaliatory tariffs. He also spoke about additional measures to support Canadian workers and businesses impacted, with details to follow in the coming days.

“Prime Minister Carney underscored that Canada is strongest when governments stand together. To this end, he emphasized continued collaboration with provincial and territorial governments, noting that the Team Canada approach has been essential in navigating the challenging times since the start of this trade war,” the readout says.

Most of Canada’s premiers appeared to back Carney’s decision to walk away, with B.C. Premier David Eby saying he was in favour of a tough approach and Ontario Premier Doug Ford advocating for the “dollar-for-dollar, tariff-for-tariff response.”

with files from Global News’ Isaac Callan

© 2026 Global News, a division of Corus Entertainment Inc.

Columbia House Record Club is shutting down. Wait, it was still in business?

If you’re of a certain age, you’ll remember ads and newspaper inserts from the Columbia House Record Club promising an unbelievable deal on records and tapes. We were told we could have seven/eight/11/12/13 albums from a long list of them for just a penny. One cent! That used to be the price of a single piece of Hubba-Bubba bubblegum!

Fantastic! An instant record collection practically for free! All you had to do was agree to buy a certain number of albums over a specified time at regular club prices. The trick was you didn’t get to choose which albums those were. That meant you were often stuck buying a record you didn’t care about. And they were often big into negative option billing, meaning albums kept coming unless you cancelled.

There were other downsides, too. Record club vinyl often wasn’t as, er, robust as the records you bought in stores. And while labels loved record clubs because they juiced sales numbers, artists did not. Many contracts contained clauses that said any records part of “12 for 1 cent” promotions were ineligible for royalties.

All of the above is moot because Columbia House, the most famous of the record clubs, is closing on Sept. 15. This marks the end of a 71-year-old business that’s been around since 1955.

It all began as an experiment to see if Columbia, the inventor of the 33 1/3 RPM album and a division of CBS Records, could get more people into the still relatively new LP format. Originally, offerings were largely jazz, Broadway recordings and easy-listening records directed at the very first generation of hi-fi nuts. Everything was released in mono until stereo records started hitting the market in the very late 1950s.

The experiment worked as records flew out of its fulfilment offices on Fifth Avenue in NYC. But it quickly outgrew those premises and opened a distribution centre in Terre Haute, Ind., in 1956. Why there? The city hosted a CBS Records pressing plant and was a railway hub, making shipping easy.

Just two years in, the company had seven million subscribers, requiring a move into computers just to keep track of everything. That made Columbia House one of the very first American industries to embrace the new technology. By 1963, Columbia House accounted for a whopping 10 per cent of the music retail market, thanks to the massive growth of rock ‘n’ roll (first marketed under a category called “Teen Hits”) and greater adoption of turntables that played LPs.

As a subscriber, you also had a choice of formats. Columbia House offered albums on 8-track (the Columbia Cartridge Club, est. 1965) and cassette (the Cassette Club, 1969) in addition to the original vinyl club and the reel-to-reel tape club (est. 1960) for the super audio nerds.

Here’s a TV ad from 1977.

Now here’s one from 1993.

Canada got its own division of Columbia House in 1979, for which 100,000 of us signed up within a year. VHS tapes entered the picture in 1981 and compact discs first went on offer in 1985. When Sony acquired CBS Records in 1987, the record club was part of the deal. Four years later, Sony and Warner turned the company into a joint venture. A Mexican division appeared in 1995.

Columbia House was at its peak in 1996, during the compact disc’s glory years. Sixteen million people bought music this way. The company employed 2,200 people and had revenues of US$1 billion thanks to a 15.1 per cent share of all CD sales. The bottom line was further boosted the following year when DVDs started shipping.

The largest its library ever grew was about 9,000 albums. That doesn’t sound like much in the digital era, but that was a much larger selection of titles than you’d find in a typical record store. But by then, the lustre was beginning to dissipate, even though record clubs still held eight per cent of the CD market as of 2001.

Change was in the air, starting with the arrival of Napster and illegal file-sharing programs in 1999. Then came the iTunes Music Store in 2003. As digital music took off and the CD death spiral began, Columbia House, its related music divisions (along with a small specialty video game unit) and other record clubs ran into trouble. An upstart called Amazon started stealing customers. A proposed merger with the now-defunct CDNow failed in 2000, which led to years of struggle. A purchase by Blackstone Group in 2002 — they took 85 per cent while Sony and Warner retained a 15 per cent stake — provided only temporary relief. There was talk of a merger with Blockbuster Video (which had 48 million customers at the time) in 2003, but nothing happened.

Columbia House finally stopped selling CDs entirely after a bankruptcy in 2015, pivoting to just DVDs and Blu-rays. That allowed the company to hang on for a while, but now the end is inevitable.

To be honest, I had no idea Columbia House still existed. How? Who was a member? Who was still buying physical media this way? The answer is “not enough,” hence Columbia House’s impending death.

© 2026 Global News, a division of Corus Entertainment Inc.

Your guide to the perfect home coffee setup

The Curator independently decides what topics and products we feature. When you purchase an item through our links, we may earn a commission. Promotions and products are subject to availability and retailer terms.

Curious about creating a coffee station or nook? This is one stylish and functional home reno that you can achieve with minimal time, cost and supplies.

And if you’re a fan of starting your day with coffee at home, you’re in good company. Fifty-five per cent of Gen Xers and 66 per cent of Baby Boomers choose coffee as their preferred breakfast drink.

On average, Canuks drank  2.7 cuppas per day in 2022 in 2022, with 33 per cent of those surveyed preferring to make their own coffee at home because it’s more affordable.

So, if you want the ease and convenience of enjoying your beverage first thing, without having to leave the house, here are some tips to set up perfect space to enjoy your hot beverages. Plus, shop top finds from brands like Ninja, Nescafé, Bodum and more.

Starting out

Creating a coffee station means dedicating an area exclusively for preparing and enjoying hot beverages. You may be lucky enough to have the counter space or a built-in area that you can simply update, but if not, consider ordering a kitchen utility rack that can store not only the coffee maker and grinds but also has room and shelving for mugs, sugar and all the other supplies you’ll need.

This sturdy unit features adjustable upper and lower shelves meaning you can keep everything organized and tidy in one place, with room to spare.[/product_listing]

 

Or, if you’ve got a long rather than tall space, try this wide and sturdy rack. Slide this one against the wall in a kitchen or open space by the dining room table and use the top shelf for a coffee machine and features four shelves plus a cabinet with doors to stash extra supplies like napkins and stir sticks.[/product_listing]

 

Java enthusiasts are particular when it comes to how to make their favourite beverage. This combo maker allows for both pods and grounds brew and can cater to everything from just enough for a travel mug to a full carafe, and everything in between.[/product_listing]

 

This inexpensive Bodum is a go-to for your morning iced coffee. The night before, pour cold water over your grinds in the Bodum. Place in the fridge overnight, press the grounds in the morning and pour for a delicious cup. Conveniently comes with a lid for the fridge and another with a plunger.[/product_listing]

 

Once you’ve decided on a coffee maker and a spot to store your accessories and equipment, keep it clean and modern with this sleek mat and keep drips and stains at bay. Its surface absorbs spills which means less clean up, and the rubber backing means it won’t slip on the counter or coffee bar.[/product_listing]

 

If you’ve got a pod-style coffee machine, display your coffee pods proudly with this stylish carousel. Designed to hold up to 24 K-Cup pods, it rotates 360 degrees so you can easily find your favourite flavour, while its vertical design helps save valuable countertop space.[/product_listing]

 

Have you heard the buzz? This instant coffee from Nestlé Gold is stealing the TikTok spotlight with its smooth, golden goodness. It’s perfect for making lattes or iced coffee at home.[/product_listing]

 

Freshly ground beans always make for a better brew. This Black and Decker version is incredibly easy to use – just pour your choice of beans into the dispenser, hit the one-touch grind button and you’re done. The sturdy, steel-blade grinder can handle up to 12 cups’ worth of beans at a time, and as an added bonus, can chop up nuts or spices.[/product_listing]

 

Change up the look of your java station, and provide a convenient and space-saving area to grab a quick cup by placing a storage rack on the counter. Able to hold up to eight mugs, but narrow enough to fit in the space between a coffee maker and your cream and sugar set.[/product_listing]

 

Once you’ve got your dedicated space picked out, painting the wall behind the station or adding art can tie the space together. Add a touch of whimsy and a coffee shop feel with a vintage looking, chalkboard-style beverage menu.[/product_listing]

 

Or, advertise your unique coffee station in neon:

Plug your sign to a normal outlet and your neon sign is ready to shine.[/product_listing]

You may also like:

Tim Hortons Original Coffee blend, Single Serve Keurig K-Cup Pods – $37.99

Starbucks Caramel Flavoured Ground Coffee – $54.66

Iced Coffee Cups with Lids and Straws Set of 8 – $37.99

Espresso Coffee Cups – $26.97

© 2026 Global News, a division of Corus Entertainment Inc.

Bank of Canada concerned over private credit risks

OTTAWA – The Bank of Canada is carefully watching the rise of an alternative credit model that has Canadian investors and banks exposed to half a trillion dollars of loans held largely beyond the public eye.

The concern revolves around private credit, which doesn’t have a universal definition but broadly involves businesses taking out loans from non-bank lenders including asset managers, insurers and pension funds.

A mid-sized business might turn to private credit if they’re looking for money to fund the next stage of growth but are still too small for a traditional bank loan or issuing debt on the bond market.

The share of Canadian businesses making use of private credit is still limited, but the rapid adoption of the model worldwide and in the United States it has been tied to high-profile bankruptcies.

Private credit was flagged as a risk in the Bank of Canada’s 2026 financial stability report in May. Economists at the central bank released a paper last week tracking the model’s growth in Canada, and explaining to a broader audience why private credit is worth watching.

Globally, the uptake of private credit is expanding rapidly as firms seek fast and flexible ways to access capital, according to the Bank of Canada.

But the report’s authors said the share of loans from non-banks to domestic businesses has held steady at about 15 per cent over the past decade. They said that suggests “private credit has not been displacing traditional sources of funding.”

The Bank of Canada’s analysis concluded Canadian firms aren’t taking out those loans en masse, but in many cases, they are underwriting them.

As of the start of this year, the bank estimates that there was a combined value of $500 billion in private lending by Canadian investors and lending to private credit funds by Canadian banks. Most of that lending activity was in the United States.

Private lending in Canada primarily comes from life insurers, pension funds and asset managers. Perhaps counter-intuitively, banks themselves are also exposed to private credit by lending to funds who are involved in the space.

The Bank of Canada noted that insurers and pension funds are stable investors in the private credit space. Domestic asset managers are a “small but growing” segment of the market, while banks’ exposures to private lending is considered relatively low-risk.

In its May financial stability report, the Bank of Canada deemed private credit risks “manageable,” but monetary policymakers think it’s still a space worth watching.

Private credit hasn’t been tested in a prolonged market downturn, so it’s unclear what kind of ripple effects the financial system would see from a shock like that.

“These exposures may help diversify portfolios and support returns, but they also create potential channels of contagion,” the Bank of Canada economists wrote last week.

“A sharp downturn in the performance of private credit abroad could affect Canadian investors and business lending in the domestic economy.”

Peter MacKenzie, senior policy analyst at the C.D. Howe Institute, said private credit emerged as an attractive option after the 2008-09 financial crisis, when big banks took a step back from loans for small- and medium-sized businesses and focused on safer, more established firms.

Private lenders stepped in to fill that gap, MacKenzie said. Interest rates on private credit are usually be higher, but businesses might like the speed at which non-bank lenders can move and the relative flexibility of their terms.

MacKenzie said there’s a lack of transparency in private credit, however, where deals are usually negotiated behind closed doors.

“The opaqueness and not having an explicit definition of what private credit is for these different insurance companies, pension plans, banks to report in their financial statements — that alone I think is a bit of a risk,” he said.

The Bank of Canada’s analysts also flagged concerns about the complex structures and lack of visibility around private lending. Growth in private credit is happening “largely outside a regulatory environment,” which poses a bigger risk for investors and Canada’s financial stability, the central bank report noted last week.

Private companies also don’t have the same reporting requirements as a publicly held bank, limiting windows into how stringent underwriting standards are for some private lenders.

MacKenzie said today’s concern over private credit is tied to “friction” in the United States.

Last year’s bankruptcy of First Brands Group, a Texas-based auto parts manufacturer largely financed by private credit, was one of the high-profile collapses that sparked alarm in the space. Some major private credit funds capped withdrawals for investors this past spring as concerns spread over bad loans.

In Canada, turmoil has been especially pronounced in private real estate funds. Firms like Trez Capital Fund Management, Centurion Asset Management Inc., Avenue Living Asset Management Ltd. and many others have temporarily halted or limited withdrawals from their funds over the past year.

An investor’s money is typically out on loan in private credit, which MacKenzie said means withdrawals typically happen on a stricter schedule than more liquid funds focused on stocks where assets can be bought and sold on a relatively easy basis.

Bruce Flatt, CEO of Canadian asset manager Brookfield Corp., said in a letter to shareholders last quarter that he was confident in the firm’s approach to the space after completing its acquisition of Oaktree, a U.S.-based fund with a significant private credit business.

Flatt dubbed the recent turbulence a “healthy adjustment” from a period in private credit where abundant capital led to loose underwriting standards.

“We do not, though, view today’s environment as a systemic problem, and the areas attracting the most attention represent only a very small part of the broader credit market,” Flatt wrote.

Outside stability concerns, MacKenzie said the exposure of Canadian banks to the private lending space could lead to a broader tightening of financial conditions if funds start to see their loans go bad. In that hypothetical, instead of lending to domestic firms, banks would be putting that money toward bailing out private credit funds.

But he said he’s also wary that panic over private credit in the United States could lead domestic regulators to come down too hard on what has been a niche but stable source of capital for firms in Canada.

“You could have an effect like that, where we start overregulating the Canadian side because of what’s happening on the U.S. side, but then we lose out again on some of that much needed Canadian business investment,” he said.

This report by The Canadian Press was first published Aug. 23, 2026.

— with files from Ian Bickis

© 2026 The Canadian Press

150th anniversary of Treaty 6 to be commemorated

DUCK LAKE – It was 150 years ago when First Nations chiefs and dignitaries met at Fort Carlton, in the wilderness of what is now Saskatchewan, to carve out a lasting agreement on how to work and live as the modern shape of Canada emerged.

Politicians, dignitaries, Indigenous chiefs and elders are set to gather in the same place on Sunday to honour Treaty 6, celebrate its legacy and recommit to fixing promises broken and dreams unrealized.

“Events surrounding this major milestone provide a special opportunity to recognize the resilience and vibrancy of Treaty 6 Nations,” federal Crown-Indigenous Relations Minister Rebecca Alty said in a statement.

Alty said Canada has historically not been a reliable treaty partner and that the federal government is committed to addressing harms and injustices.

“Despite real hardship and periods in our shared history when government policies sought to erase Indigenous cultures altogether, these communities have maintained their languages, teachings and traditional practices for generations.”

Among those expected to speak at Fort Carlton Historic Park Sunday are Gov. Gen. Louise Arbour and Assembly of First Nations National Chief Cindy Woodhouse Nepinak.

A new monument marking the anniversary is also set to be unveiled.

The treaty was the sixth of 11 treaties signed in the years after Canada was established through Confederation, and it covers most of what’s now central Alberta and Saskatchewan.

Canada was barely a country when the treaty was signed and Alberta and Saskatchewan weren’t yet recognized as provinces.

Events were fluid then, as they are now.

The signing anniversary comes as relationships between Indigenous chiefs and the Alberta government are under strain over the Oct. 19 referendum on whether the province should hold a separation vote.

First Nations in Alberta have vehemently opposed the separatist movement and have fought in court efforts to hold a binding vote. Some chiefs have gone as far as to accuse the premier of acting treasonously.

Premier Danielle Smith has defended the referendum by arguing that the hundreds of thousands of Albertans who have signed petitions on either side of the debate deserve to have their voices heard.

The fracture recently made headlines again when Joey Pete, grand chief of the Confederacy of Treaty 6 First Nations, called out Smith’s government for missing an event in Edmonton commemorating the treaty anniversary.

Alberta Indigenous Relations Minister Rajan Sawhney’s office said the minister was away but remains committed to maintaining the relationship between the province and First Nations.

Pete said if the relationship doesn’t improve, the only path forward for collaboration would be with the federal government, which he said he expects more from when it comes to honouring commitments made in Treaty 6.

Eric Schmalz, Saskatchewan’s government relations minister, said in a recent interview that the province is excited to recognize Treaty 6, calling it one of the country’s most important documents.

Schmalz, who is attending the anniversary festivities at Fort Carlton with Saskatchewan Premier Scott Moe, said the relationship between the provincial government and First Nations is strong.

He said he has had an “open door policy” to make sure Indigenous leaders are being heard.

“Treaty 6 is no exception,” he said.

“Whether it comes to resource extraction or whether it’s education in the public school system, these are important things that we need to learn and ensure that we have that focus and collaboration with our Indigenous partners.”

This report by The Canadian Press was first published Aug. 23, 2026.

© 2026 The Canadian Press

How content creators are boosting Saskatchewan tourism

WATCH: From food to travel, online creators are becoming a new way for tourism organizations to reach potential visitors. As Payton Zillich shows us, Saskatchewan tourism groups are getting in on the trend.

Advertising has changed in recent years, and tourism is no exception. More destinations are turning to influencers, using their followings to put cities and experiences directly in front of potential travellers.

In Saskatchewan, both Saskatoon and Regina are leaning heavily into content creators for tourism marketing. Discover Saskatoon collaborates with local and international creators to highlight what makes the city so unique.

“We look at people with bigger audiences, smaller audiences. We have a content creator program in Saskatoon. We kind of look to fill holes in our content already,” says Darby Sutherland, earned media manager for Discover Saskatoon.

Meanwhile, Tourism Regina uses a similar approach to position the province’s capital as a top destination for travel.

“We can reach different cities, different niche audiences, and really expose the idea of economy and planning a wonderful trip to Regina and all the things it has to offer,” says Brad Gore, Regina’s destination marketing director.

While some still view this as a non-traditional form of advertising, Monica Sarghie, an associate professor of marketing at the Edwards School of Business, says this kind of content helps a destination build a recognizable identity.

“Think about places like Paris or Amsterdam. They have their own brand. So, if you would think, ‘I want to go there,’ what would you think about? Why would you go there? Well, you have to know certain things about it in order to go,” Sarghie says.

However, getting clicks doesn’t automatically mean a creator has done enough to turn viewers into actual tourists.

“That audience member that views the content, do they actually end up being a customer? How much do they spend and in what period of time? Is it an immediate conversion, or may it be long-term? Is it a one-time customer, or is it a repeat customer?” Sarghie says.

Recently, Discover Saskatoon has put this marketing method to the test, working with Toronto-based travel and food creator Raymond Cua. While in town, Cua interacted with locals to find out their favourite places to grab a bite. After receiving hundreds of suggestions, he visited several top picks and shared his culinary experience online.

“One of the best ways to learn about a destination is through food, because that’s also where you get to learn from the locals, which gives you a better understanding of the overall destination,” Cua explains.

Reaching an audience of more than 120,000, Discover Saskatoon is hoping Cua’s fresh take on the local food scene will inspire more Canadians to put the Prairies on their travel bucket list.

© 2026 Global News, a division of Corus Entertainment Inc.

WATCH: Global News Hour at 6 BC: Aug. 22

Watch the online edition of Global News Hour at 6 BC.

Trade talks between Canada and the U.S. have collapsed, with Prime Minister Mark Carney now promising retalitory tariffs. Reaction from B.C. on the trade war, and how the premier is backing the PM’s decision to walk away from the negotiating table. A notorious killer was denied parole once again, 44 years after the murders took place.

Watch ‘Global News at 6 BC’ for the latest news in British Columbia.

Click here for more Global BC videos

© 2026 Global News, a division of Corus Entertainment Inc.

Canadian premiers appear to back Carney's decision to abandon 'bad deal' with United States

After days of negotiations, Canada and the United States have failed to reach a trade agreement, with Prime Minister Mark Carney saying he was “walking away from a bad deal.” Premiers are standing by Carney’s decision, but are also bracing for job losses and calling for support. Touria Izri has the details.

Canada’s premiers appear to be rallying behind Prime Minister Mark Carney’s decision to walk away from trade talks with the United States as 50 per cent tariffs hit billions of products across the country.

After hope that a deal could be reached between Canada and the United States percolated, talks stalled and collapsed, escalating the trade war between the two countries.

Tariffs of 50 per cent on billions of dollars in Canadian goods were levied by America on Saturday, while Canada has promised to hit back dollar by dollar next month.

On Saturday afternoon, Carney briefed Canada’s premiers on the deal he had abandoned and tariff relief.

“I’ve always said we need to fight these tariffs. Tariff to tariff, dollar to dollar,” Ontario Premier Doug Ford told reporters in Toronto.

“I’m glad he didn’t sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector and the manufacturing sector. We never started this fight, but I can assure you, we’re going to win this fight.”

Manitoba Premier Wab Kinew agreed that Canada should adopt a harsh position on the United States.

“History will not be kind to Donald Trump, so we should never appease him,” he said. “We should fight back, which is what Canada’s doing today.”

Elsewhere, Nova Scotia Premier Tim Houston said Carney had his full support.

“I continue to stand ready to support and work with the prime minister,” he said.

“It’s clear that we cannot trust or rely on the United States as we once did. This reality must make us more determined than ever to make Nova Scotia and Canada stronger. ”

The premiers of New Brunswick, British Columbia and Saskatchewan also offered their support.

© 2026 Global News, a division of Corus Entertainment Inc.

Police shooting in Toronto leaves driver dead

One person is dead after a police shooting in Toronto on Saturday afternoon.

Just before 1:30 p.m., Toronto police said they were called to the area of Wilson Avenue and King High Avenue, near Wilson subway station, for reports that a vehicle was driving erratically.

Officers said the vehicle was damaged and was involved in a crash.

The driver attempted to flee the scene, police said, before an altercation between officers and police that led to an officer firing his gun.

The suspect was pronounced dead at the scene, and police said no officers were injured.

Toronto police offered no other details about the deadly interaction.

© 2026 Global News, a division of Corus Entertainment Inc.

U.S.-Canada trade talks have collapsed. Carney says these 3 issues torpedoed them

WATCH: Carney vows 'dollar-for-dollar' retaliation after Canada-U.S. trade talks collapse

Prime Minister Mark Carney says trade talks with the United States fell apart at the eleventh hour over last-minute disagreements on how to tariff autos and broader issues of independent Canadian decision-making.

For the past several days, a deal had appeared possible and potentially even likely.

United States President Donald Trump delayed 50 per cent tariffs on billions in Canadian goods by three days, citing progress in trade talks, and even claimed “we have a deal” with Canada.

While the Canadian delegation was more cautious in its assessment, Carney shared details of a potential deal with Canada’s premiers earlier in the week, asking them to start selling American alcohol again as part of the agreement.

But at the last minute, Carney recalled his negotiating team to Ottawa, telling the nation he was “walking away from a bad deal.”

Here are the issues the prime minister said stalled progress on a deal that looked reachable in the not-too-distant past.

As part of his first round of tariffs levied on Canadian goods in 2025, Trump targeted the country’s auto sector with 25 per cent tariffs on vehicles assembled predominantly in Ontario.

The United States president repeatedly told reporters he wanted to see automakers leave Canada and bring their jobs south of the border.

In Ontario, where tens of thousands of direct and spinoff jobs are attached to the sector, unions and the provincial government have worried about keeping auto assembly in Canada.

As part of the abandoned deal with the United States, Carney said there had been progress on an approach to how to integrate autos that ultimately fell apart.

The prime minister said Saturday the two sides disagreed over “the treatment of Canadian content” in vehicles, while the United States was only willing to agree to a trade deal on cars and would not extend it to medium or heavy vehicles like trucks.

Excluding heavy vehicles from tariff relief, Carney said, would impact plants like Ford Motor in Oakville — which deals with F-series trucks — or General Motors’ Silverado truck in Oshawa.

“No rationale, just for exclusion,” he said. “So, effectively moving into a series of terms that would have made the production more uneconomic over time.”

Carney also said the United States wanted to include terms in the deal that would put limits on the trade deals Canada was able to seek with other countries.

Since tariffs were first levied on Canadian goods, Ottawa has sought new trade deals with countries around the world, positioning itself as a key “middle power.”

Deals with Indonesia and the United Arab Emirates and talks with India are among the agreements Canada has recently reached, with 20 deals touted by the prime minister’s office.

“The U.S. introduced, in the last hours, efforts to restrict our ability to have other trade deals,” Carney said Saturday.

“We believe in free trade; we’re the partner of choice in many respects for countries around the world, and the Americans wanted to restrict that. They had language that they wanted to restrict. Unacceptable.”

Carney later added that there had also been discussion of the United States encouraging Canada to match its tariffs on other countries.

The prime minister said that, if Canada and the United States shared integrated markets on some goods, that approach could make sense. On steel, for example, he said he would see the “merit” of matching American tariffs on other countries if Canada and the U.S. were trading freely.

“If you do that though, you should have an integrated market,” Carney said.

“In other words, the tariff level that you apply from Canada into the United States — because America wants to tariff everybody on everything — but the tariff level you apply should be clearly the lowest. It shouldn’t be the same as other people. It should clearly be the lowest because you have this added market protection.”

The third factor Carney said had derailed trade talks was disagreements over French language rules.

The prime minister offered few details of exactly where the two sides had disagreed but suggested it related, in particular, to French and said those rules would have amounted to a broader attack on Canada.

“ efforts to restrict our protections of our language, our culture, and in effect, our sovereignty,” he said.

Later, speaking in French, he said there were “threats” from the United States in the deal over French language and Quebec culture.

Republicans have previously taken aim at Canada’s Online Streaming Act, calling it “discriminatory” and suggesting it should result in additional tariffs.

The Online Streaming Act was passed in 2023 and would empower the Canadian Radio-television and Telecommunications Commission (CRTC) to force large foreign platforms like Netflix and Amazon to pay a portion of their annual Canadian revenues into funds devoted to producing Canadian content.

U.S. streamers and the Motion Picture Association have filed court challenges against the Online Streaming Act, as well as the CRTC’s requirement that those companies disclose financial information in order to ensure the Canadian content funding obligations are met.

The Trump administration also identified the law as a trade irritant ahead of this summer’s scheduled review of CUSMA.

— with files from Global News’ Sean Boynton 

© 2026 Global News, a division of Corus Entertainment Inc.

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