Canada's Carney says US made last-minute ‘power play' as trade talks collapse; retaliatory tariffs in place

Canadian Prime Minister Mark Carney said U.S.-Canada trade talks collapsed after Washington introduced last-minute demands aimed at restricting Canada’s ability to strike trade deals with other countries. Carney described the move as a “power play” and framed the dispute as a sovereignty issue. The breakdown follows the activation of U.S. 50% tariffs on about $28 billion of Canadian goods, prompting Canada to prepare dollar-for-dollar retaliation targeting steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The escalation raises the risk of a broader North American trade conflict and increases uncertainty for businesses exposed to cross-border trade, autos, and industrial supply chains.