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Why Canada rejected Trump's terms despite economic risks

07:06

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Brent Goff
August 25, 2026

A tariff dispute between close allies is becoming a test of political sovereignty and economic resilience. DW asked Martha Hall Findlay whether Canada has enough leverage to withstand a prolonged confrontation.

US PresidentDonald Trump has threatened Canada with 50 percent tariffs on cars, vehicle parts and steel.  

This comes after trade talks collapsed.

Prime Minister Mark Carney walked away from negotiations on Friday (August 21), saying Washington was asking for too much.

Did Canada miscalculate its leverage with Washington, and what options does it have at this point?

DW put these and other questions to Martha Hall Findlay, Director of the School of Public Policy at the University of Calgary and a former member of the Canadian Parliament with Prime Minister Carney's party, the Liberals.

 

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