Trump administration predicts US trade war ‘devastating’ for Canada

On Sunday, the Trump administration declared that Canada would be foolish to believe it could win a trade war with the US, estimating a devastating impact on its neighbor. Negotiations between Washington and Ottawa collapsed late Friday, triggering 50% US tariffs on approximately $20 billion worth of Canadian goods, or 5.5% of Canadian exports to the US.

Canada vowed retaliation, introducing new levies targeting US steel and dairy sectors effective September 8. Transportation Secretary Sean Duffy asserted Canada would emerge worse from a trade war with the US, 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 predicted Prime Minister Mark Carney would resume negotiations swiftly, as the outcome would be disastrous for Canada. On Saturday, Carney remained defiant, announcing retaliatory tariffs after ending talks with the US amid deepening tensions. Trump dismissed Canada's stance, accusing the nation of taking the benefits of being a state without being one, criticizing its treatment of Canadian farmers with hefty tariffs for years.