US says 'foolish' Canada faces 'devastating' trade war
The Trump administration has warned Canada that it would be “foolish” to think it could win a trade war with the United States, predicting a “devastating” impact on its northern neighbour.
Negotiations between Washington and Ottawa broke down late Friday, with the US retaliating by immediately imposing 50% tariffs which will hit about $20 billion worth of Canadian goods, or 5.5% of Canadian exports to the United States – which is by far its largest trading partner.
Canada responded with matching tariffs, including on steel and dairy products, which take effect on 8 September.
US Transportation Secretary Sean Duffy warned that Canada would fare badly in the stand-off.
The United States currently buys roughly 70% of Canadian exports.
“We’re great trading partners, right? But Canada gets the benefit of trading with the US way more than the US gets the benefit of trading with Canada,” he claimed on Fox News.
“To think that they’re going to go to war with Donald Trump and actually win that war with the US, I think it’s foolish on their part.”
He predicted that Canadian Prime Minister Mark Carney would return to negotiations “very very quickly, because it’s going to be devastating for his country.”
Mr Carney was defiant yesterday, announcing retaliatory tariffs on the US after walking away from a “bad deal” on trade as the rift between the longtime allies deepened.
“You’re at war when you get attacked. We got attacked,” he said, citing last-minute US demands that would have restricted Canadian trade deals with other countries along with unacceptable “threats” to the French language and Quebec culture.
Mr Trump hit back today claiming on social media that “Canada wants the benefits of being a State, without being one!!!”
“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” he added.
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‘Bully in Washington’, a Canadian citizen warns
The acrimony underscored the deepening rift between the close allies since Trump began his second term in January 2025, including his repeated and outlandish threats to make Canada the 51st US state.
Mr Carney has said bilateral relations have been forever changed, and that Canada must reduce its reliance on the United States. Despite the economic fallout, he has won political support at home for his willingness to stand up to Washington since taking office two months after Trump returned to the presidency.
“We have a bully in Washington,” Canadian retired teacher Stuart Edwards told AFP Saturday in Fort Erie, Ontario in the shadow of the Peace Bridge, a conduit for billions of dollars in annual trade with the United States.
“We’re not going to put up with it, Canada isn’t. We’ll fight back,” he said.
In the recent talks in Washington, Canada was seeking relief from Trump’s tariffs on autos, steel and aluminum, which have battered the country’s economy, forced job losses and strained what was once an iron-clad trade relationship.
The White House had alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products in introducing the duties.
US Trade Representative Jamieson Greer told the New York Times on Saturday that the US had offered to reduce its tariffs on steel, aluminum and autos, as well as eliminate a recently imposed tariff on Canadian lumber.
Greer said those measures would have given Canada “the most preferential treatment of any trading partner,” according to the Times.
He also said no new talks were planned with Canadian negotiators.
Mr Carney has spoken with provincial leaders to outline next steps.
One of them, Ontario Premier Doug Ford, said Canadians must remain united.
Mr Trump “can’t be trusted, simple as that,” Mr Ford told reporters. “President Trump is the type of person who would steal your lunch money.”
The Business Roundtable, a group of 200 chief executives of leading US corporations, warned the new tariffs “risk raising costs for American businesses and families,” and urged both governments to resume negotiations.