During the round of negotiations in DC, Canada and the USA failed to reach a trade agreement even after more than one year of negotiations. The Canadian side could not agree to certain last-minute American demands, which Canada views as infringements on its sovereignty and an attack on its key economic sectors.<\/p>\n\n\n\n
Commenting on the collapse of talks, Canadian PM Mark Carney declared that ‘they asked too much, and offered too little.’ US and Canada could not come to a common position on #LocalContent<\/a> rules for Canada to benefit from preferential access to the US market. As a matter of fact, the US pressed for Canadian automakers to move manufacturing jobs from Ontario to the United States. The US also put forward restrictions to prevent Canada from sealing Free Trade Agreements with other countries.<\/p>\n\n\n\n Historically, the US has been Canada’s largest trading partner, with 75% of Canadian exports going south of the border. Since President Trump imposed tariffs in 2024, the bilateral trade volume has slid from USD 1.33 trillion in 2024 to USD 1.28 trillion in 2025. For 2026, the trade volume is expected to contract further to USD 1.25 trillion. The tariffs could shave off 0.5% of economic growth for Canada.<\/p>\n\n\n\n