In a dramatic decision, the prime minister of Canada abruptly cut off negotiations with the United States, delivering the message to President Trump that he would rather engage in an ugly trade war than submit to an unfair deal. Matina Stevis-Gridneff, the Canada bureau chief for The New York Times, explains how the two countries reached a breaking point and describes Canada’s plan to withstand economic warfare. Guest: Matina Stevis-Gridneff (https://www.nytimes.com/by/matina-stevis-gridneff) , the Canada bureau chief for The New York Times. Background reading:  • Here’s what to know (https://www.nytimes.com/2026/08/23/world/canada/canada-us-trade-war-trump-carney.html) about the trade war. • This is how the U.S.-Canada talks collapsed (https://www.nytimes.com/2026/08/25/world/canada/trump-carney-trade-war-tariffs.html) . • The tariffs could price Canadian firms out of the United States (https://www.nytimes.com/2026/08/24/world/canada/us-tariffs-trade-economy.html) and threaten thousands of jobs. Photo: Cole Burston/Agence France-Presse — Getty Images For more information on today’s episode, visit nytimes.com/thedaily (http://nytimes.com/thedaily?smid=pc-thedaily) . Transcripts of each episode will be made available by the next workday. Subscribe today at nytimes.com/podcasts (http://nytimes.com/podcasts) or on Apple Podcasts, Spotify and Amazon Music. You can also subscribe via your favorite podcast app here https://www.nytimes.com/activate-access/audio?source=podcatcher. For more podcasts and narrated articles, download The New York Times app at nytimes.com/app.