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Prime Minister Mark Carney speaks with members of the media as he arrives at the Office of the Prime Minister and Privy Council in Ottawa on Tuesday, Sept. 1, 2026. THE CANADIAN PRESS/Justin Tang

Carney says U.S. wants to wipe out Canadian industries or make them subsidiaries

Sep 1, 2026 | 9:26 AM

OTTAWA — U.S. negotiators were pushing in trade talks last month for concessions from Canada that would have caused key sectors like the automotive industry to either become U.S. subsidiaries or be “wiped out” entirely, Prime Minister Mark Carney said Tuesday.

Until late last month, Canada and the U.S. were negotiating a deal to address trade irritants on both sides of the border. Just ahead of a U.S.-imposed deadline of Aug. 22, Carney suspended those talks and summoned his negotiating team home.

“The attitude of the United States in these discussions, and subsequently, has been one that core Canadian industries either would be subsidiaries effectively of the United States industries, or would put in place terms where those industries would be gradually wound down in Canada and wiped out,” Carney said in a scrum with reporters outside his office building.

“Of course, we’re not going to accept those terms.”

Carney added there were “mutually beneficial” elements of a deal in place before the talks broke down last month.

The prime minister said an “accumulation of issues, each of them serious enough,” prevented Canada from signing a deal, including the effects of proposed concessions on the French language and culture and restrictions on Canada’s ability to trade freely with other nations.

Carney said Canada is willing to get back to the table when the Americans are ready to have a “serious” discussion.

“When the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about having those discussions, we can have those discussions,” he said.

“It’s not constructive but that’s their democracy.”

Since the negotiations collapsed, U.S. President Donald Trump and members of his cabinet have taken to news shows and social media to repeatedly attack Canada.

Trump signed an executive order to rename Lake Ontario as Lake America on U.S. maps, and the president and his cabinet secretaries posted AI images and memes disparaging Canada.

Carney is expected to discuss developments in trade talks with labour groups in Ottawa on Tuesday. A source with knowledge of the meeting, who wasn’t authorized to speak publicly, told The Canadian Press it’s scheduled for 2 p.m. Eastern.

The source said officials from unions representing affected industries, largely in the manufacturing sectors, were invited to the meeting.

The United Steelworkers union issued a statement confirming the attendance of Marty Warren, their national director.

“Canada was right to hold the line rather than accept a bad deal and right to respond to these unjustified tariffs with counter-tariffs,” Warren said in a media statement.

“But workers did not start this trade war and should not pay the price. With new counter-tariffs taking effect Sept. 8, keeping workers working and ensuring those affected have the supports they need must be the priority.”

The steelworkers are asking the government to introduce improvements to employment insurance, a new program to help keep affected workers keep their jobs and enhanced buy-Canadian policies, among other measures.

Unifor, Canada’s largest private sector union, held a rally on Parliament Hill in late August to urge the government to protect Canadian jobs from U.S. trade pressure.

On Monday, Carney spoke about the friction with the U.S. with a group of business leaders from companies such as RBC, Bombardier, OpenText and Hydro-Québec.

Canada’s counter-tariffs on nearly $28 billion worth of U.S. products are scheduled to begin on Sept. 8. The Canadian tariffs will range from 15 to 50 per cent and target a wide range of goods, including dairy products, steel, copper and some beauty products.

The tariffs are in response to the 50 per cent duty Trump placed on $28 billion in Canadian goods, ranging from hockey sticks to honey.

The U.S. levies were in part a response to the decision by all Canadian provinces, apart from Alberta and Saskatchewan, to refuse to stock U.S. products on liquor store shelves due to American tariffs on steel, aluminum and autos.

Trump has threatened to increase Canadian automotive tariffs to 50 per cent from 25 per cent in the new year in response to Canada’s latest retaliatory tariffs.

This report by The Canadian Press was first published Sept. 1, 2026.

— With files from Catherine Morrison

David Baxter and Catherine Morrison, The Canadian Press