Toronto, August 22, 2026:

Canadians found out today that our nation is now in a full-out trade war with our largest by far trading partner, the US. Apparently, PM Carney has broken off trade talks indefinitely and intends to match US tariffs of 50 per cent when they are imposed. For the second time, Carney has blown up US trade talks. This is very bad news for Canada’s small- and medium-sized businesses (SMEs), their employees and Canadians generally. CCMBC President Catherine Swift noted “Although there is no question negotiating a trade agreement with the US is a huge challenge, PM Carney assured us during last year’s federal election that he was the right man for the job. Today’s news indicates that was clearly not the case. This failure means serious damage to the Canadian economy.”

Carney’s statement as to why he called off talks cites a number of initiatives the Canadian government is undertaking to reduce reliance on the US market. Swift said “For decades, both Liberal and Conservative federal governments have worked to diversify Canada’s trade relationships with little success. Although trade diversification will always be a positive objective, economic realities mean that the US will remain our largest trading partner by a long shot.” Other economic data about Canada that Carney cites in his communique paint a rosy picture of future Canadian economic prospects that simply defy belief give current statistics. Our dollar is already taking a hit on world markets, which will hurt all Canadians.

A key problem with the state of Canada-US trade relations is that the facts of the tentative deal that seemed to be on the table yesterday and subsequent demands by both parties are unclear. “Carney has not been honest with Canadians about the details of the negotiations. Given his past tendency to mislead Canadians, as he clearly did in the case of the Gordie Howe bridge, it is difficult to trust Carney to be open with Canadians about this breakdown in negotiations. Hopefully in the next few days we can actually see these details and judge whether this extreme move on Carney’s part was justified. Past experience suggests we will likely have to get the facts from sources outside of Canada.”

Carney also promised to dig Canadians into even more debt by saying he will be bailing out affected industries with billions more borrowed money. Swift commented “PM Carney seems to believe the answer to every economic challenge is more government spending. History has repeatedly shown the foolishness of this approach as it boosts inflation, degrades our currency and crowds out the productive private sector. Canada’s burgeoning debt is approaching unsustainable levels. Canada is currently flirting with a repeat of the mid-1990s, when Canada was effectively bankrupt.”

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The CCMBC was formed in 2016 with a mandate to advocate for proactive and innovative policies that are conducive to manufacturing and business retention and safeguarding job growth in Canada. For further information or to arrange an interview, please contact Catherine Swift at swifty4488@outlook.com or 416 816 7248.