Donald Trump has hit back at Canada after a breakdown in negotiations plunged the two countries into a trade war. In his first public comments since negotiations collapsed on Friday in Washington, the US president wrote on social media: “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,” he added. “No more!!!” His comments came after the United States imposed 50% tariffs on $20bn (£14.6bn) worth of Canadian goods, while Mark Carney, the country’s prime minister, promised to match them “dollar for dollar”. The U.S. tariffs went into effect Saturday and cover everything from hockey sticks to tongue depressors. Trade experts have predicted that the tariffs could lead to some job losses, but the biggest impact is expected to be political, sparking new tensions between neighbors. Canadian Trade Minister Dominic LeBlanc (left) and US Trade Representative Jamieson Greer speak to reporters in Washington DC on Friday. Photograph: Canadian Press/Shutterstock Both sides blamed each other for the breakdown of Friday’s talks. Carney told Canadian reporters that the country was “at war” over trade with the United States, after Trump “miscalculated” by escalating his tariff attack. “You are at war when you are attacked, and we were attacked,” the Canadian prime minister told reporters in Ottawa. “We cannot accept what they have offered us and we will not give them what they have asked for.” jump beyond newsletter promotionFree newsletter | Every weekday Subscribe to Business Today Get ready for the business day – we’ll give you all the business news and analysis you need every morning after the newsletter promotion. Jamieson Greer, the U.S. trade representative, has said the U.S. was forced to act after a year of retaliatory measures by Canada. He told Fox & Friends Weekend: “We’ve said enough and that’s why we’ve taken countermeasures. Our interest is to protect American workers and protect American supply chains.” Carney, who was previously governor of the Bank of England, was elected Canada’s prime minister last year after campaigning to lead a fight against Trump, who had previously suggested he wanted to make Canada a 51st “economically strong” state. Carney’s “dollar-for-dollar” tariffs are expected to take effect starting September 8. with new taxes on steel, dairy, appliances and electronics. The escalation has also called into question the future of the North American trade pact between the United States, Canada and Mexico, known as USMCA. The pact, which was signed by Trump during his first term, governs about $2 trillion annually in goods and services between the three countries. Trump refused to renew the USMCA this summer after Canada and Mexico formally requested it be renewed for another 16 years. When asked how the collapse of US-Canada trade negotiations would affect the USMCA, Carney said it was “certainly not good news.”
