A senior Canadian trade source said that Prime Minister Mark Carney must explain to Canadians why he pulled the country out of negotiations with the Americans as the White House moves forward with bans on certain Canadian imports.

President Donald Trump on Tuesday signed new executive orders, ramping up retaliation after Canada imposed its latest set of counter duties on the United States.

The five new orders, which will take effect later this month, will completely bar imports of certain Canadian goods, including motorcycles, some dairy products and alcoholic beverages.

But the orders also exempted some Canadian products from being tariffed altogether, including toilet paper, road salt, and cement.

The move comes after Canada’s retaliatory tariffs on U.S. goods went into effect just past midnight on Tuesday, following the dramatic breakdown in talks last month.

Canada and the U.S. appeared to be close to reaching an agreement that would stave off a new wave of 50 per cent tariffs on Canadian goods. But Canada pulled out of talks after claiming the Americans made unreasonable last-minute demands such as limits on future Canadian trade agreements, exemptions to tariff relief for automakers and changes to Canada’s discoverability rules.

The fallout from the decision was harsh, with the U.S. tariffs going into effect, Canada responding with dollar-for-dollar retaliatory levies and the two sides trading criticisms. Trump also vowed to hit Canada with new restrictions and tariffs, including a 50 per cent levy on autos and auto parts come Jan. 1.

One provincial trade source told iPolitics that while Carney explained why the American demands were unfair, he has failed to elaborate on why Canada had to end talks all together.

The source, who asked not to be identified because they’re not authorized to speak publicly, said the resulting tit-for-tat escalation in the trade war is making it harder for Canada to return to the table to secure an agreement that would stave off further tariffs.

“I’m not sure the prime minister has made a convincing argument as to why he [ended] talks. He said why he didn’t want to sign on the dotted line on Friday night. [But if] that doesn’t work for us, you keep going until you get to a deal,” the source said.

“I don’t understand the reason for the the walkout and the silent treatment, and the sort of fatalistic approach here. I don’t understand how that’s beneficial.”

Carney and the Liberals have turned up the heat on the Americans since the collapse of talks in August, with the prime minister promising not to return to the table until the Americans are serious about negotiating.

Some observers have suggested Canada has the benefit of time and can afford to wait out the Americans as Trump’s Republicans brace for the mid-term elections in November. Polls suggest the Republicans are in danger of losing at least one chamber in Congress — if not both — and that could complicate Trump’s ability to impose new tariffs.

READ MORE: Hoekstra warns Canada against waiting out Trump to score better trade deal

U.S. Ambassador to Canada Pete Hoekstra dismissed this suggestion in an interview with iPolitics‘ No Talking Points podcast last month.

He said that Trump’s 2024 victory was predicated on his promise to return manufacturing jobs to the U.S. and doubted that the coming votes would undercut support for that agenda.

“I’ve heard the arguments for 16, 18 months. I’ve heard we’ve got the leverage. It’s time for America to come to their knees,” he said.

“It’s the president’s call, but I don’t think you’re going to find the president coming back to Canada on his knees as much as Canadians might like that.”

Another provincial trade source, who requested anonymity to discuss matters candidly, said there’s not strong opposition to Carney’s approach to trade negotiations, but there needs to be a “long-term strategy” to return to the bargaining table and secure a deal that staves off further tariffs.

“We just see the craziness continue to come from Trump — and it is craziness – there’s no doubt beyond that, but the only way you stop it is by sitting down and hashing something out that’s agreeable enough that it doesn’t destroy our economy in the process.”

Canada’s business community is cautiously watching developments and calling on Ottawa to be prepared to provide more robust aid if the tariffs and trade restrictions intensify.

Matthew Holmes, executive vice president and chief of public policy with the Canadian Chamber of Commerce, said Trump’s latest actions aren’t as damaging as they could’ve been and Canadians are united behind Carney, though that could change if small businesses start folding.

“As long as the government can sustain the supports to hopefully keep people working and keep those employers making their products, that’ll be the critical piece. Because once we lose SMEs [small- and medium-sized enterprises], it’s really hard to get them back, and that’s what we are really concerned about,” he said.

“But the longer we go, the more damage that’s done, and all of the needless kind of again economic self-harm that happens will be regrettable and will be viewed as avoidable in the longer term if we could have negotiated something earlier.”

A Canadian industry source, who asked for anonymity because they’re not authorized to speak publicly, said Carney is right to avoid negotiations because of how irrational Trump is behaving. The source cited Trump’s false or exaggerated comments on how Canada is ripping off the Americans or is treating the U.S. unfairly.

Earlier this week, Trump posted a cartoon on Truth Social of him and Prime Minister Mark Carney playing hockey.

In the photo, Trump is donning a USA Hockey jersey and standing over Carney, sprawled on the ice while wearing a Hockey Canada sweater, with Trump telling Carney: “Get up, governor.”

“I don’t think we can even rationalize any discussion with this administration. It’s very difficult to have constructive discussion right now because I think the trust is gone between our two countries, and this is shameful,” the source said.

“Right now, reality is truly made up. It’s fictional. So, it’s very difficult to have a truthful dialogue. I cannot blame the Prime Minister Carney for (…) pulling the negotiator back to to Canada until the U.S. see common sense, and I’m hoping we’re going to have more common sense come (…) after the midterms.”