Trade negotiations between the US and Canada have broken down, and Canada expects the trade war to continue until after the midterm elections

The Zhitong Finance App learned that, according to people familiar with the matter, after trade negotiations broke down, the administration of Canadian Prime Minister Mark Carney (Mark Carney) thought it was unlikely to resume negotiations with US President Donald Trump before the midterm elections. The Canadian leader said he will prepare a domestic aid plan to help businesses affected by US tariffs. People familiar with the matter added that, if needed, these measures will continue until the end of Trump's term.

Carney's preparations indicate the seriousness of the breakdown of negotiations last Friday night, leading to Trump's imposition of new tariffs, and Carney's announcement of retaliation measures, which may trigger an escalating trade war between these two closely integrated economies.

Although the Carney administration believes there will be no signs of new negotiations in the near future — and there are only slim opportunities before the midterm elections — some people have warned that the situation is still changing rapidly, and the US has not ruled out the possibility of restarting negotiations.

Negotiations suddenly broke down, and Carney had to prepare for a long winter. A source familiar with the matter revealed that he would launch a domestic aid program on Saturday and told provincial governors over the weekend that this aid plan will continue during the conflict and, if necessary, until the end of Trump's term.

Carney told reporters: “We will support these businesses until they get out of trouble, which means we will continue to support them even after the end of the current US administration. We have put in place various mechanisms and will announce all the details in a few days.”

Carney's office did not immediately respond to requests for comment Sunday evening. Earlier in the day, Carney's ambassador to Washington Mark Wiseman said in an interview that Carney's retaliation action on September 8 did not mean that the two sides were expected to return to the negotiation table at the last minute. “I don't think it should be interpreted that way,” he said.

The US side said that the prospects for negotiations are uncertain. “It's hard to say. We have no plans for a new round of negotiations with Canada. We are moving forward with actions to respond to Canada's retaliation measures.” US Trade Representative Jamison Greer told the media on Saturday.

Wiseman also said that the two countries maintain close ties on many issues, but he avoided whether the two countries had discussed trade issues since the collapse on Friday. He said, “We talk to Americans every day. We will continue to talk to members of all departments of the US government because we have to do this because we are neighbors, friends, allies, and we have always done this.”

The stalemate on Friday night cast a shadow over the US-Canada relationship and caused chaos throughout the weekend. Carney announced that he would take anti-tariff measures, but did not specify, so it is unclear to what extent he will act against swing states in the November midterm elections. Meanwhile, senior US officials continue to challenge Canada — Trump says Canada wants the benefits of US statehood, while Transportation Secretary Sean Duffy calls Canada “stupid” — but as far as Trump's consistent style of work is concerned, Canada's response so far has been relatively moderate.

Carney's speech on Saturday received widespread support from various political factions in Canada and seemed to solidify his political position in dealing with the long-standing conflict. Trump's constant threats have made him extremely unpopular in Canada.

In a poll conducted after the negotiations broke down, three-quarters of Canadians supported Carney's decision to withdraw from the negotiations, although many in the same poll expressed concerns about the upcoming economic impact.

At present, it is unclear what the domestic aid package will include, and it is unclear to what extent the tariff war will escalate. An American official said on Friday evening that if Carney continues to advance the tariff plan, Trump will have the right to escalate the tariff war again.