The Trump administration has told Canada it would be “foolish” to believe it could prevail in a trade war with the United States, warning that the confrontation would have a “devastating” effect on its northern neighbour.
Talks between Washington and Ottawa collapsed late Friday, prompting the US to impose 50% tariffs immediately. The duties will affect roughly $20 billion in Canadian goods — about 5.5% of the country’s exports to the United States, its overwhelmingly largest trading partner.
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Canada answered with tariffs of its own, targeting products including steel and dairy. Those measures are due to come into force on 8 September.
US Transportation Secretary Sean Duffy said Canada would be on the losing side of the escalating dispute.
“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 told 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 the negotiating table “very very quickly” because the consequences for Canada would be “devastating”.
Mr Carney struck a defiant tone yesterday, unveiling retaliatory measures against the US after rejecting what he called a “bad deal” and walking away from negotiations. The breakdown has pushed the longtime allies into an increasingly bitter confrontation.
“You’re at war when you get attacked. We got attacked,” he said, pointing to last-minute US demands that would have limited Canada’s ability to negotiate trade agreements with other countries, as well as what he described as unacceptable “threats” to the French language and Quebec culture.
Mr Trump responded today on social media, saying 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 sharp exchange reflects the widening rupture between the close allies since Mr Trump began his second term in January 2025. During that period, he has repeatedly — and outlandishly — threatened to make Canada the 51st US state.
Mr Carney has said the relationship between the two countries has been permanently altered and that Canada must reduce its dependence on the United States. Although the dispute threatens to deepen the economic damage, he has gained domestic political backing for confronting Washington since becoming prime minister two months after Mr Trump returned to the presidency.
“We have a bully in Washington,” Stuart Edwards, a retired Canadian teacher, told AFP on Saturday in Fort Erie, Ontario, near the Peace Bridge. The crossing carries billions of dollars in trade between Canada and the United States each year.
“We’re not going to put up with it, Canada isn’t. We’ll fight back,” he said.
During the latest negotiations in Washington, Canada sought relief from Mr Trump’s tariffs on automobiles, steel and aluminium. The measures have damaged the Canadian economy, contributed to job losses and placed unprecedented strain on a trade relationship once regarded as iron-clad.
The White House has accused Canada of “discriminatory treatment” of US alcohol, automobile and dairy products as justification for imposing the duties.
US Trade Representative Jamieson Greer told the New York Times on Saturday that Washington had offered to lower its tariffs on steel, aluminium and autos, while also removing a recently introduced duty on Canadian lumber.
According to the Times, Mr Greer said the proposals would have granted Canada “the most preferential treatment of any trading partner”.
He added that no further negotiations with Canadian officials had been scheduled.
Mr Carney has held discussions with provincial leaders to set out the government’s next steps.
Ontario Premier Doug Ford was among those urging Canadians to stay 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, which represents 200 chief executives from major US companies, said the new tariffs “risk raising costs for American businesses and families” and called on both governments to return to negotiations.
