Prime Minister Mark Carney delivers remarks after suspending trade negotiations

take this opportunity to update Canadians on developments in our trade negotiations with the United States.I'm going to go through why.control the storm that blows in from Washington.We can, however, chart a new course by building Canada strong at home and diversifying our trading relationships abroad.We've been pragmatic, patient, and persistent.We pursued every opportunity to reach an agreement that protects Canadian workers and their families, that strengthens our economy, and that resists no illusions.

We recognized from the...that America has changed.Early last year, in this room, I observed that the decades -long process of steadily increasing integration between our economies was over.Our government understood before many that America would transform all of its commercial relationships, that it would put a series of tariffs on its closest allies and use economic integration as a weapon.We recognized that sometimes Its signature was written in pencil.We worked in that context to try to strike a fair deal on which Canadian businesses and workers could rely.

Our goal has always been to get the best deal for Canadians, never a deal at any price or on any time frame.Last month, when the United States announced another round of unjustified tariffs, I gave our negotiating team a new mandate to seek a fair deal negotiated in good faith.Because I believe that people on the ground, on both sides of our border, want this relationship to work.The bonds between Canadians and Americans are long and they remain strong.A mutually beneficial trade agreement is possible.One that respects our sovereignty.

One that builds on our complementary strengths.One that lowers costs for families on both sides of the border.One that creates good jobs for our workers.Canada.Canada.has always worked towards these goals.

We've consistently proposed long -term partnerships, while America has often pursued short -term transactions.The gap between partnership and competitor, unfortunately, has remained too wide in recent days.So last evening, I instructed our negotiators to return to Ottawa.We cannot rest.Over the past year, the U .S.

has imposed a series of tariffs that violate its commitment under our agreement with them in Mexico, so -called CUSMA.The United States has continually changed the rationale for these actions, from fentanyl to taxes on U .S.tech giants, to certification of U .S.aircraft, to the sharing of tolls of a bridge that Canada built and paid for, to our dairy policy, to provincial decisions not to sell American alcohol during the trade war, to a television advertisement that quoted Ronald Reagan, to smoke from wildfires.

...for U .S.tariffs has been their claim that since the United States runs, quote, a trade deficit with Canada, we were ripping them off.only exists because the U .S.buys so much of its energy from Canada.

Canada fuels American growth, supplying 99 % of their natural gas imports, 85 % of their electricity imports, 60 % of their crude oil imports.I don't think they want us to stop sending any of that energy.And if you look more broadly at the comprehensive U .S.-Canada trade balance, which includes the many services from finance to entertainment that we buy from the United States, That shows a persistent American trade surplus.Most fundamentally, trade is about building mutual strength, creating a relationship that benefits both countries.

customer for U .S.S.cars.In fact, we buy more American -built cars and trucks than the United Kingdom, Japan, and China combined.It's the same for American steel products, and a top three customer for 45 U .S.

states.Last year, Americans sold almost $600 billion in goods.On the other hand, Canadian exports to the United States, Well, the United States has imposed a seemingly taking several steps in good faith to try to find compromise.Last month, the U .S.announced that effective August 19, it would impose 50 % on cement and beer.

The only advantage of this latest threat was that it was a catalyst for more intensive negotiations.Our objectives in these latest talks have been to Canadian businesses.Secondly, to provide greater stability to our trade relationship.Thirdly, to significantly reduce U .S.tariffs on our key... excess of any in the world.

Fourth, protect our small and medium -sized businesses, including by removing the imminent threat of those new tariffs.And fifth, end sovereignty so we can keep building the country Canadians want.Canada has made offers to...We were willing to drop our remaining retaliatory tariffs on strategic sectors.particularly steel, aluminum and autos, that made it economic for Canadian companies to export to the United States.In exchange for a fair deal, we would encourage our provinces to return U .

S.alcohol to the shelves, and we would take administrative measures we wouldn't do.We were not prepared to compromise Canada's sovereignty or to undermine our key industries.We were not prepared to compromise our sovereignty, the protection of the French language and our culture.Now, in recent weeks, in the world with the United States, including by securing the best terms for each of our most important strategic sectors and by providing greater relief earlier this week, that we were moving towards a mutually beneficial agreement.In recent days, the United States proposed new terms that were un -economic, unfair, and undermined the net benefits for Canada.

In short, they asked too much, and they offered demands revealed the limits of their commitment to a true economic partnership.As I said earlier, as a result, last evening I suspended Trudeau's card in good faith right up to the last minute to defend the interests of Canadians.in order to protect Canadian workers, farmers, families, and businesses.Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.Also include products that are currently subject to unjustified Section 232 and 338 tariffs.This is a focus to allow them to compete with U .

S.products in the Canadian market.In the coming days, we'll release details of these new tariff measures.Let me be clear.We take this step reluctantly.Reluctantly because we recognize that some of these measures will raise costs and reduce choice for Canadians.

Reluctantly, because we recognize that some U .S.companies and some U .S.states are innocent bystanders in a dispute that they did not want.Reluctantly, because this trade dispute is preventing Canada and America from doing so much good that we could do together.

But at the same time, we take this step confident that it is in the best interest of Canada.And that by rejecting a bad deal, by standing up for Canada, by focusing on what we can control, we will build Canada strong for all.Building at home and diversifying trade abroad is not our plan B. It has been our plan A from the start.Canada will continue to pursue this path to build major infrastructure.We've already referred 27 nation -building initiatives to the new major projects office.New ports, mines, energy corridors from every region of the country that now represent $500 billion in new private investment.

Projects that will help Canada build bigger.This new agency has committed to building nearly 17 ,000 homes in the framework of 17 partnerships.We are building local infrastructure.Canada.Just last Monday in St. John's, the governments of Canada, Quebec, Newfoundland and Labrador launched the single largest investment in Canada's history to build the largest clean energy project in North America ever.enough clean electricity to power every single vehicle in Canada.

We're building our economy while taking charge of our security by investing half a trillion dollars into our defense, expanding our shipyards, growing our aerospace industry, increasing our cyber capabilities.And we're realizing Canada's full potential as an energy superpower in nuclear, LNG, renewables, and low carbon oil and gas.These are the initiatives.Canada is now the best connected economy in the world.Over the last year, we have signed more than 20 trade and security deals across five continents.We completed our most recent deal with the United Arab Emirates in a record 47 days.

Canadian businesses now enjoy tariff -free access to1 .5 billion consumers.Over the next six months, we'll double that number through new trade deals from ASEAN to India.It's time.We're going to expand discussions with the European Union, the second most important economy in the world, to deepen and strengthen our security and economic partnership.Canada is building such unparalleled market access because we're trusted, because we're reliable, and because we have what the world wants.

That's why the world is coming to our door.$100 trillion in assets.When they get here, they'll find a Canadian economy that has never been more connected or more ambitious.Nous réduisons les impôts, nous éliminons les obstacles et nous accélérons la transformation de notre économie.We have brought back the tax rate on companies' investments to only 13%, that is, 4 .5 % less than in the United States, and about half of the G7 average.We will speed up approval processes, and we will make them more predictable while investing with the private sector.

Over the past year, we have eliminated all federal trade obstacles.We have increased the conditions so that Canadian workers can put their skills to good use across the country.We are also working with provinces and territories to eliminate the obstacles that have divided our economy for generations.This fall, in Budget 2026, we will go further to make Canada even more competitive and attractive for businesses and strategic investors to build, invest, and grow.The new U .S.

tariffs can divide us.They're a miscalculation.We know we're stronger together.In the last year and a half, Canadians have met this moment with resolve, with purpose, with strength in many ways.Vacationing in national parks, buying Canadian products, choosing Canadians, small acts of solidarity, repeated millions of times that make a statement.We're masters of our destiny.

This government is matching that spirit with $25 billion to protect Canadian workers and businesses hurt by American tariffs in supply chain resilience.And we're financing large international markets.and we are being our own best customer.We have the right plan to build Canada strong.We're on track, and it's working.At the same time, take time.

And that's why we're also focused on giving Canadians a boost today and a bridge to that better tomorrow.So we've cut taxes on incomes, on housing, and on gas.We've introduced the Canada groceries and essential benefits, up to $1 ,890 per family, helping 12 million Canadians get ahead.We're stronger now than when the United States started this trade war.more unified, more determined, more ambitious.With the strongest fiscal position in the G7 and a resilient economy, Canada has all the resources we need to pivot and to prosper.

Growth is accelerating.We're projected to have the second fastest rate in the G7 this year and next.We are creating jobs in this economy at four times the rate of the United States.Our non -U .S.exports are up sharply.

They're on track to double over the next decade.Foreign direct investment in Canada is at its highest level in two decades.It's running at twice the rate of our nearest G7 competitor, Canada.Canada now ranks as the most attractive country in the world for infrastructure investment.Last spring, I warned that America is trying to break us so they can own us.And I promise that that will never, ever happen.

We are keeping that promise.Canada is becoming stronger and less dependent on America.We are already giving ourselves more than they can take away.And we are just getting started.We'll surrender ourselves to the waves to be storm -tossed by events.We set our own course.

We make our own weather.Au Canada, nous sommes mêmes chez nous, de l 'océan à l 'eau.Building Canada strong for all.Thank you very much.

I'm hoping you can tell us what the specific last -minute changes that the Americans proposed that made a deal indenible.

Thank you.Thank you for the question.Look, I would say two things.One is there are some specifics and I'll give you some examples, but it was also a cumulative aspect, as I mentioned in my remarks.In terms of specifics, I'll give you three and I know there's other questions.First, with respect to the auto industry, both in terms of the level of the tariffs

the treatment of Canadian content, so Canadian parts, Canadians of the tariffs.Americans wanted to limit it to autos only, not include medium and heavy, autos and light trucks to be more specific, not include medium and heavy -duty trucks, which is a big change, obviously, and with respect to for excluded.GM Silverado, same thing, would have been excluded from that.No rationale, just for exclusion.So effectively moving into a series of terms that would not Okay, so that's a change, that restriction, that clarification, that precision was a change.The U .

S.introduced at the last 20 New Deals, Economic and Security Partnership, the prospect of doubling our market access because we believe in free trade.We're the partner of choice in many respects.And I'll give you a third, et peut -être on peut discuter plus en français.Continual efforts, always resisted, as I said in my remarks, and always will be resisted.Efforts to, and in effect, our sovereignty.

So elements coming in, ramping up, any of them individually, but collectively put us in a position where what had been on a trajectory, absent those elements, for a fair deal, a good deal for Canadians, not perfect, but a good deal, a deal we would not accept.It's a question for the U .S.administration.Ultimately, I'm responsible for the decisions of the Canadian government.We take it as a cabinet, but I certainly bear those responsibilities.

And so the head of the U .S.administration, the President, bears responsibility for the decisions they take.But I will say this.which is that the Canadian team unified.Unified, the individuals you see here, their team members, our ambassador in Washington, my chief of staff, unified, talking together, the clerk of the Privy Council, everyone in the loop, everyone knows what our objectives are, collective decision -making.

As I say, ultimately, I and the Cabinet bear responsibility.Last point, and I'll go to your colleagues, because I think this is important.In these last few days, we were drilling down on specific issues that might have been papered over, the differences in the administration, if there were indeed differences.Ultimately, there's a decision -maker at the top.And in drilling down on those, a number of those issues that I just referenced became very clear, and there was not a deal that we would sign.Thank you.

Next question, Rochelle Gisson.

Bonjour, André.Bonjour.the information that is on Canadian products.So, there are plenty of them.There are many, many, many.And we say no.

And that's it.Basically, that's it, Canadians.

Next question.What is this new escalation?

It's not good news, of course.but now it's clearer the bottom line of the Americans in some sectors and the limits that they would face in the integration of Canada and America.We have more perspective.

Next question, please.

Good morning Prime Minister, David Baxter with the Canadian Press.There's a lot of people watching this right now who are rightfully worried about losing their jobs, losing their businesses in this trade war.A couple of things.

First, These, the people in these industries, particularly the industries that are being hit today by these fifties of industries, spread across the country, concentrated Ontario, Quebec, British Columbia, by and large, that's not exclusive, but it's that.And they have very much been and stretched so far to try to get a deal.Now, but not a deal at any price, not a deal on any timetable.So a couple of messages for those people.The first is we're going to hit back, okay?We're going to hit back and we are going to provide tariff protection where we can, where it's relevant for some of those industries, steel products and others, in some cases, businesses coming in and taking business.

So that provides some.But more fundamentally, to support these businesses, we'll be releasing details of this, businesses, And we will support these businesses for as long as it takes.In other words, beyond the life of this U .S.administration.Okay, so there's working through our regional development agencies, also working through the banks for a limited number of easy -to -use but very fast -growing businesses.

are going to help these businesses work through this period.Future limits are to the American market.

follow -up.

Susan Holt said she was reluctant to put liquor back on the shelves.Quebec's Christine Fichette was saying she hadn't made up her mind on what Quebec's response was going to be yet.And Doug Ford was uncharacteristically silent, but he did send you a letter outlining his red lines last Monday.Just did any pushback from the premiers play a factor in the decision?

First, let me say a couple of things.I mean, the short answer is no.just to give you that perspective.But, and this is an important but, the dialogue with the premiers in the last few days, over the course of the last 18 months, and the partnership that we've established with the premiers is crucial, fundamentally important.The essence of our First Minister's discussion two days ago, we're going to have another one this afternoon, that it's our judgment, as we told Canadians, that we were on a path to a potential deal that would give Canada...We still had to come back to the premiers with the exact specifics, so it's entirely reasonable for Premier Fichet or Premier to say, well, I want to see everything before I make that determination, but that our judgment was going to be that it's going to be worth to take steps a couple of steps that provinces needed to do in order to get the overall deal.

I'll go back to Mr. Baxter's question, not least because of the potential impact that we would have.That was the discussion.I would, as chair of that meeting, there was a consensus that that's what we would do.Termination Wednesday, I guess it was, when we spoke, yeah.Because we hadn't finalized all the terms of the deal.We were still negotiating the deal.

And as it turns out, as I've just described, that the Americans changed a number of those terms, introduced new elements.made it uneconomic.And so we're not asking the premiers to do anything today except work together to support our businesses and build the country strong.And I'll underscore that last point, which – and I said this on Monday in St. John's.That agreement and those initiatives are the most important initiatives for the future of our country.As important as trade is with the U .

S.and as dramatic as the issues are and the response that we have to give in certain industries, what we're doing ourselves, premiers, the federal government, truly Canadians, is far, far more important.It dominates.

Thank you.Next question.

Good morning, Prime Minister.Mike Blanchfield, Politico Canada.You've outlined a few things that the Americans asked for.that were unacceptable in Canada.Did they ask about critical minerals given their importance, their requirement for it, and how did that play out in what happened at the last Well, yeah, thank you for the question.

Look, critical minerals, other aspects of energy, but let's focus in on your question, critical minerals.There is a real opportunity for cooperation between Canada and the United States in critical minerals.Just as there is cooperation between Canada and the deals, you know, it's on the order of $50 billion worth of US have.They have a tariff initiative that they've worked on.We have the G7 Action Plan, which we launched in Kananaskis.Bringing those together makes sense, good opportunity, kind of thing you do as part of a trade deal.

One of the reasons to do a trade influence are cultural support and language protections, not agreeing to sensible economic terms for our core industry in autos.You know, we've got a lot of demand for critical minerals, so there's less opportunity to cooperate with the United States.That is something that is a myth.opportunity as a consequence of what's happened, but we didn't cause it to happen.

Did they ask for exclusive access to our critical minerals?We would never give exclusive access.Did Canada do anything at the last minute that could have triggered this?Did you make any asks or offers?

No, there's a short answer.From our perspective, we clarified what was on offer and we're continually disappointed by the answers.

Your midnight statement mentioned part of the breakdown was the reliability of any deal.What do you say to other business and government leaders around the world who can wonder if the U .S.can be trusted from here?If Donald Trump can't execute the art of the deal with friendly Canada, who can he do business with?

Yeah, I mean, you know, if you execute a deal, you have to stand by that deal.And Canada stands by our agreements.We've stood by the terms.I mean, we're only responding in the context of a series of unjustified tariffs that have been put in place.We have a deal with the Americans.I mean, that's the thing.

We have a deal with the Americans.It's called CUSMA.We have side ledgers that clarify behavior in steel, in aluminum, in autos.Yeah, we have a deal.Okay, what message does that send?On the other side of the ledger, you have a country, Canada.

that has a series of trade deals around the world that's expanding rapidly, that will continue to expand, that the world wants.And so we're going to continue to pursue that.And one thing that we certainly were not going to accept was any restriction on our ability to execute those deals.

Follow -up?Secondly, was part of your calculation around decliningU .S.S.already elevated inflation that American consumers are facing and also recent instability in the U .S.

bond market?Well, let me say a couple of things.No.What we're focused on, as you know, is building Canada strong.It's putting Canada in a better position for Canadians, for all Canadians.Now, it happens to be the case that we are stronger and we're in a better position than we were 18 months ago, because we've recognized right from the start that we needed to focus on building at home, we needed to diversify abroad.

Both of those have longer payoffs but we're already starting to see some of the benefits of that.We recognized and credit to the Minister of Finance, we recognized right from the start that we need to continue to maintain the strongest fiscal position in the G7 so not for operating expenses and that shift in borrowing there.And let me make this point because the last part of your question, you know this well.that we are entering a phase where fiscal strength, discipline, focus is going to be very important.It's going to be scrutinized.I mean, it doesn't, I will say to Canadians at home, like as someone who's been in and around financial markets for a long period of time, what I'm about to say doesn't make sense, but it's the way the world works, is that markets sometimes ignore these fundamentals.

It's too late.We have our house in order and we're getting stronger.

Next question.

Hi Prime Minister, Tom Parry with CBC.Can you talk more about what the United States was demanding Canada do with its other trading partners?Were they asking us to impose tariffs?

There were elements of that and in certain sectors, an integrated auto market and you want to have an integrated steel market, for example, related to that.market, and you have concerns, as we do, as the Americans do, about non -market economies, about trans -shipment of steel, for example, through third countries, etc.Then it makes sense to have an interest, as opposed to being told to do something or being restricted from doing something else.Now, the second point is, there are a series of steel and aluminum related.By the way, if you do do that though, you should have an integrated market.In other words, the tariff level that you apply from Canada into the United States, because America wants to tariff everybody on everything, but the tariff on other people should clearly be the lowest because you have this added market protection.

That's part of the negotiation.We weren't satisfied.Ultimately, we're on steel, aluminum, And related products, so -called derivative products, think HVAC systems, nuts and bolts, you know, anything that's Bombardier products, suggested restrictions in terms of our ability to execute trade deals, which you can ask the first, not double, follow -up.Since you asked, could you ask, I'm going to say no, you can't ask three questions.Sorry, now I've forgotten the first part of your question.

In trying to get us to gain more control over our trade policy.

Why are they trying to do it?It's a question of sovereignty.Look, let's take a big step back.Big step back.And this is what is unfortunate about the situation we're in.We're here for the right reason, but it's unfortunate.

Canada and America, and our G7 partners, we think abouta lot of issues the same way.We're concerned about excess capacity and non -market economies.We care deeply about forced labour and child labour.We want, and I'll take that second example, where absolutely do we want to cooperate, do we want to share information, we want to align our approaches and our implementation of those approaches, and was that potentially part of this deal?Absolutely.

There's a host of other things where absolutely we want to work together, but when it moves into restrictions and using Canada effectively as more leverage for America, I mean clearly, Canadians wouldn't accept that.We'll make our decisions about who we want to trade with and how, and including on how we work with the United States and other partners.Thank you.We have a range of other options to protect our industry.First and foremost, what are we looking to do with that are disadvantaged by the American trade action?So we start with that, and then we think about matching.

We don't like doing these, but in this environment, it makes sense.One of the things that has happened over the course of the last 12 -18 months is that we have considerably ramped up.development of critical minerals.Without a doubt, I can't put a precise number on it, but much less of that development has been related to the United States than it would have been if we were not having these trade issues.It is clear to Canadians the value of diversifying our partnerships, and it's clear to Canadians that a pipeline exports oil to Asia or an LNG facility that exports LNG to Asia is more valuable than just the dollar value because it helps diversify our economy, our partnership, it makes us less dependent on the United States, less, I mean I'll just state the obvious there.So that's one of, I'm putting that in I'm taking your question transparently and turning it to the positive of how we act to build out this as opposed to pulling things, relationships that already exist, and restraining them.

But, you know, we'll see.

Do you plan on reviving certain measures eliminated as what previous concessions, the digital services tax, the U .S.streaming payments for CanCon, for example, those measures?And why does it feel like today Mark Carney is going to war, trade war, the tone?

Because we're attacked.you're at war when you get attacked.We got attacked.The U .S.put 50 percent.

We waited until the United States decided to actually implement the so -called 338 tariffs.That's fine.We've got the reserves.We've got the resilience.We've got the plan.We've got the

focus.We will respond.We're going to focus on what we can control.We're going to build.Let me say this in terms of measures and tax and others.We are constantly looking at our tax system, how we can make it as fair as possible, shift the burden to those who are most able to pay, and in a way that is it is the plan.

And so we want builders to put money to work in new businesses, in big infrastructure.We want them to put to work in Canada.And that makes it strong in a way for all.There is an attack in a war.It's not a good thing at all.It's not our choice.

the threats against the French language, and the never -acceptable loss because of that is the end of this stage of negotiations.

But today, where is this escalation going to take us?Where is this escalation going to take us?This escalation of tariffs on the one hand, tariffs on the other, economic crises on the other.

Canada.

Thank you.This was a lecture across all races committed at the Conference de Prince.Merci.