The US-Canada 'divorce' and the $1.2 trillion fallout

The US-Canada relationship is entering a sharper trade phase after Canadian Prime Minister Mark Carney ended comprehensive negotiations with the United States. The dispute comes as both countries conduct more than $1.2 trillion in trade annually, but officials say tensions are at a “high watermark.” Canada is already facing tariffs on key exports including steel, lumber, and automobiles. US President Donald Trump is threatening steeper tariffs from next year. Dialogue has cooled further: US trade advisor Peter Navarro used harsh language toward prior Canadian negotiators, while Ontario Premier Doug Ford criticized Trump. A poll found three-quarters of Canadians approved Carney’s decision to walk away, reinforcing public backing for a “deal” rather than a one-sided rollover.