An interesting soundbite from Council on Foreign Relations (CFR) President Mike Froman who distills down the main point of contention.  Essentially, the U.S. position is to demand a common trade approach toward China and the U.S. delegation gave Canada an ultimatum within the deal proposed, us or them.

If Mike Froman is correct, Mark Carney chose China. [X LINK] Video Below:

Mike Froman, former US Trade Rep on CNN yesterday afternoon “I think the new issue is that the Trump administration is pressing Canada, as well as other countries, to adopt a common approach vis a vis China, whether it’s a common external tariff or export controls, or ensuring… pic.twitter.com/RoTIXMZs3k

— cbcwatcher (@cbcwatcher) August 23, 2026

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Those who have followed the Canadian trade squatter strategy from NAFTA through the USMCA likely know former Canadian Finance Minister Chrystia Freeland, and her manipulative narcissism.  Today the purple sausage reappears from Kiev where she is leading the Ukraine reinvestment and money laundering effort on behalf of Volodymyr Zelenskyy.

Freeland calls in from Kiev to remind the Bloomberg audience that Canada’s best next steps will be to conduct targeted narrative operations against the American people in order to retain the Canadian parasite position.  Rather than accept reciprocal terms for fair trade, Freeland notes the best strategy is to deliver targeted propaganda directly to American voters against President Trump.  This was the approach Freeland, and former Prime Minister Justin Trudeau took in 2018.

It is ironic that Freeland says President Trump is trying to create Canada as a vassal state of the U.S. while she is in Ukraine, the ultimate vassal state being used for a proxy war against Russia.  WATCH:

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There are a few that ankle bite about President Trump focusing on trade agreements as if it is foreign policy and not economic policy for America that is the #1 factor in our future.  I do not see value in such nonsense.  Economic security is national security – period.

After a day of Canadian government officials pushing a twisted narrative about their position regarding U.S-Canada trade, President Trump puts forth a simple truthful statement:

[SOURCE]

Additionally, U.S. Trade Representative (USTR) Jamieson Greer talked to the New York Times about the current issues that created the fracture in negotiations. I will outline those aspects below.

CTH readers will note that in 2025 and again earlier this year, our prediction was the USMCA (CUSMA) would dissolve in/around early July, and the U.S. would ultimately end up withdrawing completely in/around August of 2026.  I would be remiss if I did not note current events are following a very predictable path.

Trade issues with Canada are irreconcilable against the entitlement that underpins the Canadian economic mindset.  You will note these “friction points” do not exist with Mexico; there is a cultural and brutally factual reason for this.

Canada feels entitled to maintain a trade relationship with the USA as if they are a state in our union.  However, just like the abusive mentality in any toxic relationship, Canada refuses any reciprocity.  Canada maintains protectionist tariffs, non-tariff barriers, quotas against U.S. goods and one-way restrictions on banking, finance, intellectual property and media. The latter part they call “cultural” protection.

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Canadian Prime Minister Mark Carney is delivering speeches, holding press conferences and trying to justify his position following the collapse of negotiations between the USA and Canada.  Meanwhile, President Trump and his trade team are intentionally quiet.

In all high-stakes negotiations, deals and financial issues, the apex predators always know you make your point clearly and without reservation, you establish your terms and then you don’t say anything.  Total silence.  The first person to break the silence is the losing hand.  Once your terms are established you stay quiet and then let the other party talk, talk, and talk themselves to yes.  Silence is the power.

Mark Carney is telling everyone his position and trying to justify what has taken place.  Mark Carney is in a very weak position on both structure and substance of the issues. [I wrote a lengthy explanation HERE]

Within this segment Carney tries to explain what the USA requests were that Canada would not agree to.  He notes the U.S. wanted strict control over Canada’s free trade agreements (FTAs) with other countries.  What Carney fails to note is that this exists already, right now in the USMCA [Article 32:10 of the USMCA].  The U.S. has termination rights to both Canada and Mexico FTAs with other countries.  This is an example of Carney gaslighting Canadians.

In reality, Canada wants unlimited and unrestricted access to the U.S. market as if they were a 51st state.  However, Canada will not permit unlimited and unrestricted access to their market for U.S. companies.  This, Carney says, compromises the sovereignty of Canada. WATCH:

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I was confident the discussions would collapse because the Canadian position is based on lies, fraud and political denial.  Canada is playing politics hoping to retain their one-sided benefits and outlast President Trump into the midterm election.  Trump, however, has already executed the tariffs and the only thing remaining for him and Greer to do is trigger the six-month USMCA withdrawal. [Details Here]

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Moments ago, Canadian Prime Minister Mark Carney delivered the news via his X account.  Discussions between the U.S and Canada have collapsed. All trade representatives are called back home.  The 50% U.S. tariffs against Canada are now in effect.  A trade war begins.

First, read the statement from Prime Minister Mark Carney, with the understanding that Carney is making the first statement because the news is exceptionally bad for Canada.  Worse than bad.

[SOURCE]

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This video from the Promethean Action PAC wraps in a few background details that most readers and followers of the U.S-Canada trade relationship will likely find interesting.

Susan Kokinda argues the dispute is larger than USMCA negotiations, portraying Canada as an “outlaw” that enables transshipment “smuggling,” fails to enforce forced-labor bans, and facilitates “snow-washing” through weak corporate transparency and money laundering documented in British Columbia’s Cullen Commission.

She contrasts U.S. Energy Secretary Chris Wright’s pro-development case for oil and gas as civilizational progress with Canadian Minister Mélanie Joly’s Chatham House speech promoting “geo-industrialization” and a Mark Carney-aligned “middle powers” strategy against U.S. and China “hegemons.” Kokinda highlights a House of Commons petition led by Green Party leader Elizabeth May to declare U.S. Ambassador Pete Hoekstra persona non grata, and notes Joly’s outreach to U.S. lawmakers and cities during the trade fight.  WATCH:

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Earlier today following a meeting in Washington, D.C., between Canada-U.S. Trade Minister Dominic LeBlanc and United States Trade Representative Jamieson Greer, both representatives delivered remarks to reporters.  There are no details provided, however, within his remarks, Greer says he is confident that a deal has been reached as they work to finalize the details.

USTR Greer notes the significant trade barriers between the U.S. and Canada appear to have been resolved. However, the devil is going to be in the details.  Greer noted they are putting together the documentation that will allow him to brief President Trump and congress on the proposals.  “While we certainly have eliminated some of the irritants we have had over the past several years, we are also taking a strong foot forward,” Greer remarked. WATCH:  

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Given the antagonistic nature of Canada and their dependency on retaining an assembly economy with access to the U.S. market, it will be interesting to see what non-tariff barrier positions the Canadian government is willing to put forth.

There is a lot of optimism in media surrounding the tariff pause and the remarks that have followed; but I would caution interested parties to be aware of the scale of the divide between the two sides.

President Trump’s remarks from today about the Canada-U.S. trade position are below.

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President Trump has paused the 50% tariffs set to go into effect against Canada at midnight.

According to media reports, after the Canadian trade delegation failed to come to a negotiated settlement on key USMCA terms, Prime Minister Mark Carney called President Trump earlier today to discuss the tariffs that were scheduled to begin tomorrow.

President Trump has announced a pause via Truth Social:

[SOURCE]

I’m curious to see how this works out.  Apparently, there’s something about the Keystone XL Pipeline in a deal.

UPDATE:

Congratulations Mr. President. The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian… https://t.co/YSQ4rNmKAv

— United States Trade Representative (@USTradeRep) August 19, 2026

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The White House Office of Trade and Manufacturing released an extensive report this week identifying the major nations who enable China to transship goods into the U.S market in an effort to avoid tariffs.  [REPORT HERE]

Within the report several nations and regions are identified as being used by Chinese manufacturers to avoid U.S. customs and duty enforcement mechanisms.  However, both Canada and Mexico are cited as primary enablers of the process.

[SOURCE HERE]

The issue strikes at the heart of the problem identified long ago with the NAFTA agreement, and the problem only worsens when the USMCA provisions on country of origin are not enforced.

When you remove oil and lumber, the majority of Canada’s manufactured exports to the USA contain Chinese component parts and this has been the source of much friction in the current trade negotiations.  The manufacturing supply chain within all free trade agreements only works when the source of component goods is accurately recorded.

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The Canadian trade officials continue to misread the room.  Threatening the Trump administration with something the Trump administration benefits from, is not exactly the best trade strategy.

In the background the DOJ has just arrested a woman for her part in a trafficking operation, smuggling Indian illegal aliens into the USA through Canada {citation}.  Simultaneously, a petition within Canada to remove U.S. Ambassador to Canada, Pete Hoekstra, is gaining support because Hoekstra is focused on American best interests and not looking out for the best interests of Canadians {citation}.

On the economic front, Canadian trade minister Dominic LeBlanc met with U.S. Trade Representative Jamieson Greer for the third time in three weeks. However, it’s Canada’s Chief Trade Negotiator Janice Charette, who also participated in discussions, making headlines with threats.

Janice Charette is telling the Canadian public that formal trade discussions with the USA will end if President Trump and USTR Jamieson Greer trigger the 50% tariffs against Canadian goods which are scheduled to begin on August 19th.

President Trump and USTR Greer announced last month the U.S. would begin 50% tariffs on a range of Canadian products. the tariffs are intended as reciprocal action for Canada’s counter-tariffs on U.S. automobiles and steel, as well as decisions by Canadian provinces to boycott American alcohol. {CITATION} According to USTR Greer the tariffs will affect approximately $20 billion in Canadian imports, representing around 5.2% of the $383 billion in goods the United States imported from Canada in 2025. USMCA covered products would not be exempt from the tariff.

Ms. Charette is reported to have made it clear if the U.S. goes through with the tariffs, the Canadians will pull out of USMCA discussions and walk away from renegotiating the trilateral trade agreement.

This is apparently the threat from Canada.  However, when contrast against the intent to eliminate the multilateral trade agreement, the threat carries terms completely acceptable to the Trump administration.

CANADA – Canada’s lead trade negotiator with the U.S. Janice Charette has warned her American counterparts that if the White House imposes new 50 per cent tariffs on Aug. 19, it could put further trade talks at risk.

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