With the collapse of 2026 US-Canada trade negotiations in August and the implementation of counter-tariffs by Prime Minister Mark Carney in early September, Canadians are left wondering what happened and what comes next. Perspectives Journal editor Clement Nocos spoke to Daniel Drache, political economist and Professor Emeritus of Political Science at York University, for an explainer on the escalating crisis.
This interview has been edited for clarity and brevity.
Clement Nocos: Prime Minister Mark Carney promised to deliver a trade deal with the United States with much of his “elbows up” campaign rhetoric, but this has since spiralled as the US escalates its tariffs and Canada imposes retaliatory measures. What stands out about the collapse of interim trade deal negotiations meant to in August 2026 that were meant as a stop gap in place of CUSMA’s renewal?




