US President Donald Trump has accused Canada of seeking the benefits of being an American state without actually becoming one, after trade negotiations between the two countries collapsed.
Trump made the remarks after the breakdown of talks triggered new 50 per cent US tariffs on a range of Canadian goods.
The US president also accused Canada of imposing what he described as “massive” tariffs on American farmers over the years.
Canadian Prime Minister Mark Carney, however, described the new tariffs as a “miscalculation” aimed at hurting and dividing Canada.
He said Canada would retaliate against the US “dollar-for-dollar” from September 8, with counter-tariffs expected to cover products including steel, dairy, appliances and electronics.
Carney said the two countries were now in a trade war.
“They asked too much and they offered too little,” he said on Saturday. “You’re at war when you get attacked. We got attacked.”
Trump has repeatedly suggested since returning to office that Canada could become the 51st state of the United States, a proposal that has angered Canadian political leaders and many residents.
Speaking to Fox News on Sunday, Trump described Canadians as “foolish” for entering a trade war with the US and believing they could win.
The latest tariffs will apply to about $20 billion (£15bn; C$28bn) worth of Canadian imports, representing roughly 5 per cent of Canada’s total exports to the US. Products affected include wine, dairy, cement, clothing and hockey equipment.
The measures come on top of existing US tariffs on Canadian steel, aluminium, automobiles and lumber.
Carney said Canada’s response was reluctant but necessary to protect the country’s interests. Details of the counter-measures are expected to be announced in the coming days.
The two countries had appeared optimistic about reaching an agreement earlier in the week, but negotiations broke down after Washington and Ottawa accused each other of making last-minute changes.
Carney said the US had presented unacceptable conditions, including restrictions on Canada’s ability to negotiate new trade agreements with other countries.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” he said.
US negotiators, however, accused Canada of introducing new demands and reversing positions on issues that had already been agreed.
US Trade Representative Jamieson Greer told Fox News on Saturday that there were currently no plans to resume negotiations.
He said Washington had been prepared to reduce some of its tariffs on Canadian goods as part of the proposed agreement.
Carney rejected claims that Canada had made last-minute demands, saying Ottawa had simply clarified what was on offer and was repeatedly disappointed by the US response.
The dispute has drawn support for Carney from several Canadian political leaders.
Ontario Premier Doug Ford backed the prime minister and said Trump “can’t be trusted”.
British Columbia Premier David Eby said Washington’s demand for restrictions on Canada’s ability to negotiate other trade deals would effectively reduce the country to “the economic equivalent of the 51st state”.
Conservative opposition leader Pierre Poilievre also criticised the latest US tariffs as unjustified.
Quebec Premier Christine Fréchette warned that jobs could be lost because of the new tariffs and promised measures to support affected sectors.
Alberta Premier Danielle Smith, whose oil-rich province has sought closer ties with the Trump administration, urged both countries to return to the negotiating table.
$1.6tn Trade Relationship at Risk
The latest crisis follows more than a year of on-and-off trade negotiations, which intensified after Washington set a deadline for Canada to reach an agreement or face additional tariffs.
The US and Canada are also involved in a mandatory review of the United States-Mexico-Canada Agreement (USMCA), the North American trade pact signed during Trump’s first term to replace the 1994 North American Free Trade Agreement.
The agreement supports about $1.6 trillion (£1.2tn) in annual trade between the US, Canada and Mexico.
Earlier this summer, Canada and Mexico formally requested that the USMCA be renewed for another 16 years. The United States declined to renew the agreement in its current form.
Asked about the implications of the collapse of the latest talks for the wider North American trade agreement, Carney said it was “certainly not good news.”
The latest confrontation has further strained one of the world’s most closely integrated trading relationships, with no immediate indication of when Washington and Ottawa might return to negotiations.
