Trump administration predicts US trade war ‘devastating’ for Canada

The Trump administration on Sunday declared that a trade war with Canada would be "devastating" for the country, predicting severe consequences for the Canadian economy. Negotiations between the United States and Canada had broken down, leading to the implementation of new 50% tariffs on approximately US$20 billion worth of Canadian goods, representing 5.5% of Canadian exports to the US.

In response, Canada announced that it would reciprocate the tariffs, targeting the US steel and dairy industries starting from September 8.

Transportation Secretary Sean Duffy of the US dismissed the notion that Canada could emerge victorious in a trade war against President Donald Trump, stating, "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 further predicted that Canadian Prime Minister Mark Carney would return to negotiations "very, very quickly," emphasizing that the trade war would have devastating effects on Canada.

Carney remained defiant, announcing the retaliatory tariffs and declaring that the US had attacked Canada. He argued that Canada had been treated unfairly, particularly in terms of taxation on Canadian farmers for an extended period, and vowed to put an end to it. Trump responded to Carney's comments, accusing Canada of wanting the benefits of being a state without actually being one and calling out the massive tariffs imposed on Canadian farmers over the years. He also expressed his frustration on Truth Social.