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Trump administration warns Canada: Trade war would be 'devastating'
๐Ÿ‡ธ๐Ÿ‡ฌ Singapore /Economy & Trade

Trump administration warns Canada: Trade war would be 'devastating'

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Trump administration warned Canada that a trade war would be "devastating" for its economy.
  • New U.S. tariffs of 50% on about $20 billion of Canadian goods took effect after negotiations broke down.
  • Canada plans retaliatory tariffs on U.S. steel and dairy industries, while U.S. officials argue Canada benefits more from trade with the U.S.

The Trump administration has issued a stark warning to Canada, asserting that engaging in a trade war would be "foolish" and "devastating" for the Canadian economy. This comes after negotiations between Washington and Ottawa collapsed, leading to the implementation of new U.S. tariffs.

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.

โ€” Sean DuffyU.S. Transportation Secretary Sean Duffy's assessment of Canada's position in the escalating trade dispute.

Effective immediately, the U.S. has imposed 50% tariffs on approximately $20 billion worth of Canadian goods, representing 5.5% of Canada's exports to the United States. In response, Canada has announced its intention to match these tariffs, with specific measures targeting the U.S. steel and dairy sectors set to take effect on September 8.

You're at war when you get attacked. We got attacked.

โ€” Mark CarneyCanadian Prime Minister Mark Carney's justification for imposing retaliatory tariffs.

U.S. Transportation Secretary Sean Duffy emphasized the imbalance in trade benefits, stating that Canada gains significantly more from trading with the U.S. than vice versa. He predicted that Canadian Prime Minister Mark Carney would quickly seek to return to negotiations due to the severe economic impact on his country. Duffy characterized any attempt by Canada to "win" a trade war against the U.S. as misguided.

Canada wants the benefits of being a State, without being one!!!

โ€” Donald TrumpPresident Trump's statement on social media regarding Canada's trade demands.

Prime Minister Carney, however, remained defiant, announcing retaliatory tariffs after walking away from what he described as a "bad deal." He cited last-minute U.S. demands that could restrict Canada's trade agreements with other nations, along with "threats" to the French language and Quebec culture, as reasons for the breakdown. President Trump responded on social media, accusing Canada of seeking the benefits of being a U.S. state without the responsibilities and criticizing past tariffs on American farmers.

We have a bully in Washington. We're not going to put up with it, Canada isn't. We'll fight back.

โ€” Stuart EdwardsA retired Canadian teacher expressing defiance against U.S. trade policies.
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.