Trump hits back at Canada as tariff war escalates

WASHINGTON: US President Donald Trump has lashed out at Canada after Prime Minister Mark Carney announced retaliatory tariffs on American goods, deepening a trade dispute that threatens to further strain economic ties between the two neighbouring countries.

Trump responded sharply on Sunday after Canada confirmed that new tariffs targeting US products would take effect on September 8.

“Canada wants the benefits of being a state, without being one!!!” Trump said in a post on Truth Social, while also accusing Canada of imposing heavy tariffs on American farmers for years.

The latest escalation follows the introduction of new US tariffs covering around $20 billion worth of Canadian goods. The measures, which took effect on Saturday, impose tariffs of up to 50 per cent and affect products ranging from hockey sticks and cement to other Canadian exports.

Carney announced Canada’s response a day earlier, saying Ottawa would impose new tariffs particularly targeting American steel and dairy products.

The Canadian prime minister described the situation in unusually forceful terms, saying the country had effectively been “attacked” and was responding accordingly.

The confrontation follows the collapse of recent trade negotiations between Washington and Ottawa. Earlier discussions had appeared more constructive, with Trump saying he believed the United States could reach an agreement with Canada and pointing to his positive relationship with Carney.

But Carney said the latest US demands had crossed a line.

According to the Canadian leader, Washington proposed terms that were “uneconomic” and “unfair” while undermining the benefits Canada expected from a potential agreement. Ottawa ultimately rejected the proposal.

US Trade Representative Jamieson Greer offered a different account of the negotiations. He told The New York Times that Washington had offered to reduce tariffs on Canadian steel, aluminium and automobiles while also removing a recently imposed tariff on Canadian lumber.

Greer said the proposed measures would have provided Canada with exceptionally favourable treatment compared with other US trading partners.

However, the offer failed to produce a breakthrough.

Greer also told Fox News that Washington was preparing measures in response to Canada’s retaliation, signalling that the dispute could escalate further rather than return immediately to the negotiating table.

A senior US official described the latest talks as candid but not acrimonious, suggesting that despite the increasingly hostile public statements, both sides had maintained communication during negotiations.

The economic stakes are significant. The United States and Canada share one of the world’s largest trading relationships, with businesses and consumers on both sides relying heavily on cross-border commerce.

The latest tariffs could therefore raise costs for companies, disrupt supply chains and put additional pressure on industries already facing uncertainty.

With Canadian counter-tariffs scheduled to take effect in September, attention will now turn to whether Washington and Ottawa can find a compromise before the measures trigger a wider trade confrontation.