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Published September 1, 2026

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

By David Baxter
Prime Minister Mark Carney speaks to reporters outside his Ottawa office on Sept. 1, 2026
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

U.S. negotiators took the position in trade talks that core Canadian industries — including the automotive sector — must either become subsidiaries of their American counterparts or be "wiped out," Prime Minister Mark Carney said Tuesday.

"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 talks broke down last month.

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The prime minister maintained the U.S. side asked for too many concessions that would undermine the auto sector and affect Canadian sovereignty by restricting access to other trade deals.

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 fell apart, U.S. President Donald Trump and many members of his cabinet have taken to news shows and social media to repeatedly attack Canada. That included Trump signing an executive order to rename Lake Ontario as Lake America on U.S. maps, and the president and his cabinet secretaries posting multiple AI images and memes disparaging Canada.

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.

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

The U.S. tariff is 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 U.S. 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.

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