Canadian Prime Minister Mark Carney suspended negotiations with President Donald Trump and announced retaliatory tariffs after the United States introduced last‑minute changes to a proposed trade agreement.

Canada and the United States have maintained a longstanding free‑trade relationship, with Canada exporting roughly 70 % of its goods to the United States. The two nations were in the final stages of talks to update the North American Free Trade Agreement when the United States requested additional concessions on the automobile sector and other trade matters.

Carney said the United States asked for terms that were unfair and uneconomic, calling the changes a power play. He noted that the proposed restrictions on other trade deals were unacceptable. In a statement, he said the decision was taken in Canada’s best interest and that the United States had attacked Canada by imposing the tariffs.

Opposition leader Pierre Poilievre endorsed Carney’s move, saying Canada could not accept one‑sided tariffs that risk de‑industrialisation. Ontario Premier Doug Ford wrote that any agreement reached under pressure could embolden the United States to seek further concessions. British Columbia Premier David Eby reaffirmed his support for the national effort.

The trade dispute has already affected various sectors. Canadian provinces have removed U.S. alcohol from store shelves, leading to a decline of more than 70 % in exports of American spirits and a 78 % drop in U.S. wine exports to Canada, amounting to a $357 million loss. Travel revenue to the United States fell by about C$3.3 billion in the previous year as Canadians avoided trips to the United States.

Carney and Canadian officials now await Trump’s response. The future of the ongoing NAFTA review remains unclear as both sides consider next steps.