Merve Aydogan
01 September 2026•Update: 01 September 2026
Canadian Prime Minister Mark Carney said Tuesday that his government “never” believed it had secured a trade deal with the US, even as talks continued until the negotiations ultimately broke down.
Speaking to reporters in Ottawa after his Liberal Party swept all three federal by-elections held on Monday, Carney said the collapse stemmed from “an accumulation of issues, each of them serious enough” to block a deal on its own.
He pointed to unresolved concerns over the French language and Quebec culture, restrictions Washington sought to place on Canada’s ability to pursue trade agreements with other countries, and terms that would have locked Canada into an “uncompetitive” position in key industries, particularly automobiles.
Asked for specifics on the restrictions Washington had sought, Carney said any broad limits on manufacturing sectors would affect virtually every country Canada trades with or is negotiating with, from ASEAN members to India, the Philippines, Thailand and the Mercosur bloc.
“Canada is a sovereign state,” he said, adding that Ottawa “will strike free trade deals with the countries we wish to strike free trade deals.”
Saying that the broader issue was Washington’s approach, Carney described it as treating core Canadian industries as though they “would be subsidiaries effectively of the United States industries” or would be “gradually wound down in Canada and wiped out,” an outcome he said Ottawa would not accept.
He called the position misguided, arguing that “the United States auto industry is made stronger by the Canadian and the Mexican auto industries,” especially at a time of major change in the sector.
Despite the breakdown, Carney left the door open to renewed talks.
“We never viewed that we had that deal, and it diverged towards the end. At some point, maybe it’ll converge again,” he said.
On the by-election results, Carney said voters had shown clear trust in his government, giving it “more than 50%” support in every riding, and described Canadians as united and ready to buy domestically and travel within the country.
He also cited economic gains, saying job growth is running “four times the rate of the United States,” foreign direct investment has hit its highest level in two decades, and non-US exports are on pace to double amid the strongest quarterly growth in the G7.
Asked about US officials mocking Canada’s military, Carney said such conduct was “beneath their office.” He also denied that Ontario Premier Doug Ford played any role in derailing the talks, saying trade decisions rest solely with the federal government and Cabinet.
