Carney Says Trade Talks Can Resume If US Stops Insulting Canada

September 1, 2026 at 08:53 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Prime Minister Mark Carney said Tuesday that a mutually beneficial trade deal with the US remains possible, but talks cannot resume while Trump administration officials publicly insult Canada. He cited recent comments mocking Canada's military and economy, including a post by Defense Secretary Pete Hegseth. Carney said discussions broke down Aug. 21 over an accumulation of issues, including proposed tariff arrangements affecting auto manufacturing.

Key Facts

Trade talks between the US and Canada broke down on Aug. 21, and Trump imposed 50% tariffs on $20 billion worth of Canadian imports the next day.
Canada has announced retaliatory duties set to take effect Sept. 8 on a roughly equal amount of US goods.
Carney said US officials proposed terms that would make Canadian auto and other key industries 'subsidiaries, effectively, of the United States' industries' or gradually wind them down.
On Monday night, US Defense Secretary Pete Hegseth made a post mocking two women in a Canadian youth cadet program.
Treasury Secretary Scott Bessent scoffed at the idea the US was in a trade war, asking if Canada would 'take their two submarines from the Edmonton mall and sic them on us.'

Carney's Conditions

Carney, speaking Tuesday morning to reporters in Ottawa, was asked about President Donald Trump's move to rename Lake Ontario to Lake America, along with other comments from US officials denigrating Canada's military and economy. "There's a positive opportunity that has always existed with the United States for a mutually beneficial trade deal that respects Canadian sovereignty," the prime minister said. "When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions, we can have those discussions." Asked specifically about remarks from members of Trump's cabinet insulting Canada's armed forces, Carney called those comments "beneath their office."

US Officials' Insults

On Monday night, US Defense Secretary Pete Hegseth made a post mocking two women in a Canadian youth cadet program. Earlier Monday, Treasury Secretary Scott Bessent scoffed at the idea the US was in a trade war with its northern neighbor, asking if Canada was going to "take their two submarines from the Edmonton mall and sic them on us." That's a reference to a visitor attraction that was removed from the West Edmonton Mall in 2005.

Trade Breakdown

Trade talks between the US and Canada broke down on Aug. 21, and Trump imposed 50% tariffs on $20 billion worth of Canadian imports the next day. Canada has announced retaliatory duties set to take effect Sept. 8 on a roughly equal amount of US goods. Speaking Tuesday, Carney said the talks collapsed due to an "accumulation of issues," including on proposed tariff arrangements affecting key industries such as auto manufacturing. US officials have taken the view that those sectors "would be subsidiaries, effectively, of the United States' industries, or would put in place terms where those industries would be gradually wound down in Canada," Carney said. "We're not going to accept those terms."