U.S. Trade Representative Jamieson Greer said Canada caused the collapse of trade negotiations by introducing new demands in the final hours [1].

The breakdown of these talks threatens the economic stability of the two neighbors and could lead to significant financial penalties for Canadian exporters.

Greer detailed the failure during an appearance on CBC’s “Hanomansing Tonight,” where he pushed back against Ottawa's version of events. He said that the parties had reached a tentative agreement on Aug. 18 [1]. According to Greer, Canada changed its demands shortly after that agreement was struck, which prevented the deal from being finalized [2].

"Canada changed its demands in the final hours of negotiations," Greer said [2].

In separate interviews with CNBC and Squawk Box, Greer said that Canadian officials were not satisfied with the terms of the tentative agreement. "They wanted more," Greer said [3]. He said that there had been enough agreement among the parties to announce a deal before the negotiations failed [4].

Ottawa has disputed these accounts. Canadian officials said the United States was responsible for the last-minute changes that led to the collapse [5].

The stakes for the resolution of these disputes are high. Reports indicate the U.S. could impose 50% tariffs on $20 billion of Canadian imports [6]. Such a move would mark a severe escalation in trade tensions between the two nations.

Greer did not specify which particular requests Canada introduced that derailed the talks. However, he said that the U.S. position remained consistent while the Canadian side shifted its requirements at the end of the process [2].

“"Canada changed its demands in the final hours of negotiations."”

The conflicting narratives between the U.S. and Canada suggest a fundamental breakdown in trust between the two negotiating teams. If both sides continue to blame the other for last-minute changes, the likelihood of returning to the table decreases, increasing the risk that the U.S. will move forward with heavy tariffs to force a concession from Ottawa.