Tariffs spat: Carney bets Canada can defy Trump

Canada has been quietly praised for refusing to fold under pressure from US President Donald Trump in the long-running fight over trade tariffs .

The latest talks between the North American neighbors collapsed on August 21. Until the 11th hour, both sides were talking as if a deal was within reach.

The United States then put 50% tariffs on about $20 billion (€17.2 billion) worth of Canadian goods, while Ottawa pledged to match those duties on US imports.

Until the talks folded, Canada's approach was to cut a deal that would reduce the tariffs and keep cross-border supply chains functioning, particularly in the automotive and steel sectors.

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US negotiators were, however, accused of changing the terms at the last minute, which the Canadian side said would have forced them to match US tariffs on China .

According to Ottawa, Washington wanted a say on future trade deals with other nations and to prevent Chinese goods being routed through Canada to evade US duties.

Dan Ciuriak, a senior fellow at the Waterloo, Canada-based Center for International Governance Innovation, described Trump's tariff-matching plan as "fortress North America," which he said was now a sovereignty issue for Ottawa.