The United States offered to reduce tariffs on steel, aluminum, and autos, and eliminate a recently imposed tariff on Canadian lumber, before negotiations suddenly collapsed last night, Jamieson Greer, the U.S. trade representative, said Saturday. He detailed confidential elements of the offer, noting it would have granted Canada the most preferential treatment of any trading partner. Talks soured late Friday despite weeks of hopeful discussions.

The administration pledged to eliminate the 10 percent tariff on softwood lumber and cut automotive tariffs to as low as 7 percent for vehicles using U.S. content. Steel and aluminum proposals targeted 25 percent, while downstream products faced reductions up to 25 percentage points. Officials also planned to suspend 50 percent tariffs on dairy, wine, and hockey sticks, plus cooperate on critical minerals.

Consensus fractured over cultural protections, French language safeguards, and non-U.S. partner tariffs. Prime Minister Mark Carney dismissed the proposal as a “bad deal,” refusing demanded concessions. Canada had already agreed to scrap retaliatory tariffs and restore U.S. liquor sales but insisted the U.S. rejected essential exemptions for heavier trucks.