United States Trade Representative Jamieson Greer suggested on Monday that Canada had political motivations for rejecting the terms of a bilateral trade agreement that Ottawa had called unacceptable, deepening the tariff war between the two neighboring countries.
Speaking to CNBC, Greer said Washington had tried to accommodate Canada by halving tariffs on steel and aluminum, significantly cutting tariffs on automobiles, and even addressing products such as sawn lumber, covering what he called "somewhat sensitive" issues for the longtime ally.
Greer says Canada wanted more
Greer said the Canadians simply wanted more. He said he did not know whether it was a political issue for them, adding that it certainly made no economic sense, but that it may have been politically motivated given Canada's approaching midterm elections. He said he did not know for certain, but that the Canadians had come back wanting more, and the United States was not willing to give in.
According to Greer, Canada had expressed its desire to negotiate a month earlier, an offer that Washington accepted. He said the United States was prepared to move forward in good faith, and did so, adding that Canada had been offered better access to the American market than any other country in the world.
Greer said that by Tuesday night, enough progress had been made to announce that a path to an agreement had been found. He said that as the two sides then began finalizing the deal, issues emerged in its final hours in which the Canadians simply wanted more.
Tariffs take effect after talks collapse
The breakdown in negotiations last week led to the imposition of United States tariffs of 50% on approximately $20 billion of Canadian products, which took effect in the early hours of Saturday.
Canadian Prime Minister Mark Carney denounced as "unacceptable" the conditions Washington added in the "last hours" before the deadline for the new tariffs, calling it "a miscalculation."
Carney said the terms proposed by Washington threatened Canadian sovereignty, would limit Canada's ability to negotiate treaties with other countries, and would harm strategic sectors such as the automobile industry. In response, he announced that Canada would match Washington's new tariffs "dollar for dollar," starting on September 8.
Broad support for Carney's response
The Liberal leader's decision was welcomed by provincial authorities, media outlets, trade unions and even members of the opposition, including critics of the prime minister such as Conservative leader Pierre Poilievre. Poilievre said a bad deal could not be accepted and called for national unity in the face of Washington's tariffs.
Trump threatens further tariff hikes
President Donald Trump raised tensions with Canada further on Monday, threatening to increase tariffs to 50% on all automobiles, trucks of all sizes, auto parts and steel imported from Canada, starting January 1, 2027.
Relations between the two allies have deteriorated since Trump returned to power. Since then, he has imposed tariffs on Washington's trading partners and repeatedly referred to Canada as the "51st state" of the United States, drawing outrage from Ottawa.
