Canada's Trade Gamble: Mark Carney Steps Away From U.S. Deal

Prime Minister Mark Carney has walked away from a potential trade deal with President Donald Trump, ending a fragile negotiation that had hung on the edge of an agreement.

Ottawa’s decision to refuse the U.S. government’s last‑minute demands was framed as a defense of Canadian sovereignty and economic security. Carney described the proposed tariffs as a "miscalculation" aimed at "hurting and dividing" his country.

The fallout is already visible: U.S. beverage sales in Canada have plummeted by 78% with a $357 million loss, and Canadian wine stations have been emptied by provincial bans on American spirits. Automotive exports, a key Canadian export category, now face uncertain tariffs on both sides of the border.

Canadian public opinion is split. A recent poll from Abacus Data found 36% of citizens would support retaliation, while a Leger survey said 56% want the federal government to take a hard line and withdraw further concessions.

Carney’s move has sparked a debate among provincial leaders and national politicians. Ontario’s Premier Doug Ford said the country would "win this fight", while California's leader David Eby called for a unified national response. Conservative opposition leader Pierre Poilievre warned that a one‑sided agreement could "de‑industrialise our country".

The collapse of the trade negotiation also casts doubt on the future of the broader U.S.-Mexico‑Canada free trade agreement. Ottawa now awaits President Trump’s reply, while the Canadian public sits at a crossroads between short‑term economic pain and the promise of a stronger long‑term trade stance.