Carney says trade deal became untenable when U.S. 'asked too much and offered too little'

Carney says trade deal became untenable when U.S. 'asked too much and offered too little'

Canada came to realize that sometimes the U.S.'s signature 'was written in pencil': PM

Prime Minister Mark Carney told his negotiators to walk away from the table after the Trump administration introduced late unacceptable demands on culture, autos and sovereignty that, when taken in concert with their overall approach to talks, revealed the U.S. was not interested in a "true economic partnership" with Canada.

In a departure from his usual diplomatic language, Carney suggested the U.S. sometimes signs trade deals in "pencil," and while Canada's government is united and working together, the same is not true of the Trump administration.

"We cannot accept what they've offered, and we will not give what they've asked," Carney said on Saturday in Ottawa, adding that the United States 'asked too much and offered too little.'

The prime minister revealed that the U.S. had issues with Canada's subsidies for French culture; the prevalence of French-language media online and even the requirement to have bilingual labels on products sold in Canada.

"It was unacceptable right from the start, but the Americans kept trying and trying and we said no," Carney said. "Ultimately it's simple. That was never on the table for Canada and it would not have been acceptable to Canadians."

Carney outlines the last-minute changes U.S. tacked onto trade deal terms

When it came to the auto industry, Carney said the U.S. wanted to treat Canadian-made parts unfairly and to exempt some pick-up trucks from U.S. tariffs while leaving them on cars without any explanation.

Carney said those demands were introduced late and, if accepted, would have moved Canada "into a series of terms that would have made the production [of vehicles in Canada] more un-economic over time."

The U.S. team also wanted to introduce measures into the pact that would significantly undermine Canada's sovereignty, the prime minister said.

"The U.S. introduced in the last hours efforts to restrict our ability to have other trade deals," Carney said. "Because we believe in free trade, we're the partner of choice, in many respects, for countries around the world, and Americans wanted to restrict that, they had language to restrict that. Unacceptable."

Throwing shade at the Trump team

Carney said the effort to try to squeeze more concessions into the deal at the last minute derailed months of negotiations.

"Any of [those issues] individually, but collectively put us in a position here that had been on a trajectory, absent those elements, for a fair deal, a good deal for Canadians — not perfect — but a good deal [became] a deal we would not accept," Carney said.

"The prime minster's decision to recall his negotiators means threatened 50 per cent tariffs on a wide range of Canadian products kicked in at 12:01 a.m. Saturday. Carney said Canada's dollar-for-dollar matching tariffs on U.S. goods will begin the Tuesday after Labour Day.

He was asked if U.S. Commerce Secretary Howard Lutnick's intervention in the talks was an impediment to the deal, and he used the opening to get a dig in at his southern neighbour's approach to the talks.

"The Canadian team, unified ... everyone in the loop, everyone knows what our objectives are, collective decision making — ultimately, I and the cabinet bear responsibility for those decisions, but unity. You cannot say that about the United States administration."

Carney asked whether U.S. can be trusted after trade talks break down

Carney said Canada went into the trade talks fully aware the U.S. had changed its spots and had embarked on a mission to reshape its trading relationships to one where it used previous "economic integration as a weapon."

He noted that the Trump administration has justified tariffs on Canada with a continually changing rationale that began with fentanyl and since moved to wildfire smoke, dairy quotas, the certification of U.S. aircraft and Ontario Premier Doug Ford's anti-tariff ads that quoted former U.S. president Ronald Reagan, all of which violate the Canada-U.S.-Mexico Agreement.

Through the Trump administration's actions, Carney said, Canada has come to realize "that sometimes, its signature was written in pencil."

U.S. administration not unified during trade negotiations, Carney says

Writing in The Hub on Friday, University of Calgary economist Trevor Tombe said the 50 per cent tariffs might only knock a "couple of tens of a percentage point off of GDP growth," but they will hit Canada's job market hard.

"If these tariffs take effect and remain in place, I estimate that nearly 90,000 jobs across Canada could be lost. And those losses go beyond where the tariffs directly land," he wrote.

Tombe said Alberta's exports will be "barely touched" by the tariffs compared with Ontario, Quebec and British Columbia, but Alberta-based businesses that provide support for exporters elsewhere in the country stand to lose 9,000 jobs. He also said he expects about 36,000 job losses in Ontario, 18,000 in Quebec and 11,000 in B.C.

The federal Liberal government estimates the tariffs will impact about $27 billion worth of Canadian goods and put about 56,000 jobs at stake.

Peter Zimonjic is a senior writer for CBC News who reports for digital, radio and television. He has worked as a reporter and columnist in London, England, for the Telegraph, Times and Daily Mail, and in Canada for the Ottawa Citizen, Torstar and Sun Media. He is the author of Into The Darkness: An Account of 7/7, published by Vintage.