White House says Canada rejected the most generous US trade deal offered

The remarks, delivered at a press event in Thunder Bay, Ontario, offered further elaboration of why negotiations broke down in late August after officials had expressed optimism a deal was imminent. Carney framed the dispute as a question of whether negotiated tariff reductions could be relied upon once they were signed.

“There needs to be some stability and credibility” in any future trade pact, Carney said. “There were a few instances in the negotiations where those protections were not going to be given, and in fact, the opposite was going to be inserted, which is unacceptable.”

The Wall Street Journal reported that the two sides had tentatively agreed to sharp reductions on existing tariffs covering specific sectors. Carney’s account makes clear that the sticking point was Canada’s insistence that any agreed-upon cuts on steel, aluminum and automobiles carry assurances that tariff levels would not be subject to change.

The White House pushed back, saying Canada had been offered the most generous trade deal among America’s trading partners. In its account, Ottawa rejected the proposal and then made further demands while offering little in return. The two characterizations have not been publicly reconciled.

The breakdown triggered a new round of U.S. tariffs on Canadian goods and prompted Ottawa to schedule retaliatory measures set to take effect Tuesday. President Trump, speaking in the Oval Office, reiterated that the United States does not need Canadian goods, citing U.S. energy and forest products. Trump has separately threatened to impose what the Journal described as a potentially crippling 50% tariff on Canadian-made motor vehicles and auto parts starting Jan. 1.

Earlier in the week, Carney criticized what he described as taunting of Canada by U.S. officials, calling it unhelpful for resolving outstanding trade issues. The collapse has left in place the new U.S. tariffs that Carney said were triggered by the breakdown and Canada’s retaliatory duties set for Tuesday.