U.S. President Donald Trump said Canada wants “the benefits of being a state” without actually becoming one after trade talks between the two countries broke down Friday.
The collapse led to new 50% U.S. tariffs on some Canadian goods. Prime Minister Mark Carney called the tariffs a “miscalculation” meant to “hurt and divide us.”
Carney said Canada would respond with matching tariffs starting Sept. 8, including duties on steel, dairy products, appliances and electronics. He said the two countries were now in a trade war.
Both sides had been hopeful about reaching a deal earlier in the week. Talks fell apart after Canada and the U.S. accused each other of making last-minute changes.
“They asked too much and they offered too little,” Carney said.
Trump later called Canada “foolish” for entering a trade war with the U.S. and said it would not win.
The new tariffs cover about $20 billion in Canadian imports, including wine, dairy, cement, clothing and hockey equipment. They are in addition to existing U.S. tariffs on Canadian steel, aluminum, cars and lumber.
Canadian political leaders largely backed Carney’s response. Ontario Premier Doug Ford said Trump “can’t be trusted,” while B.C. Premier David Eby criticized U.S. demands that would limit Canada’s ability to make trade deals with other countries.
Alberta Premier Danielle Smith urged both countries to return to the negotiating table.
The trade dispute comes as Canada, the U.S. and Mexico review the USMCA trade agreement, which supports about $1.6 trillion in annual trade between the three countries.
Carney said the collapse of the talks was “certainly not good news” for the future of the agreement.
