US President Donald Trump has sharply criticised Canada after Washington's new tariffs on Canadian goods came into effect, accusing Ottawa of seeking the benefits of being part of the United States without actually becoming a US state. His remarks came a day after last-minute trade negotiations between the two countries collapsed without an agreement.
In a post on Truth Social, Trump wrote that Canada “wants the benefits of being a State, without being one,” referring to his previous comments about Canada potentially becoming the 51st US state. He also accused Canada of imposing high tariffs on American farmers for years and said the US would no longer accept the arrangement.
The latest escalation follows the failure of trade talks between Washington and Ottawa to reach a last-minute compromise. The United States has now imposed 50 per cent tariffs on Canadian goods worth around billion, according to the report. The duties are expected to affect roughly 5 per cent of Canada's annual exports to the US, covering a range of products.
The move has triggered a response from Canadian Prime Minister Mark Carney, who announced retaliatory tariffs against American products. Carney said Canada's new measures would target sectors including US steel, dairy and electronics and are scheduled to take effect on September 8.
Carney said Canada would match the US tariffs dollar for dollar to protect Canadian workers, farmers, families and businesses. The announcement places further pressure on an already strained economic relationship between the two neighbouring countries.
Canada remains heavily dependent on the US market, with nearly 70 per cent of its exports going to the United States. Despite that dependence, Carney said Ottawa would seek to diversify its trade and strengthen relationships with other countries.
The Canadian prime minister also criticised the conditions proposed by the Trump administration during the latest negotiations. According to Carney, earlier discussions had been progressing positively, but new US demands made a deal unacceptable to Canada.
Carney described the proposed terms as economically damaging and unfair, arguing that they would undermine the benefits of any potential agreement. He also said Washington's demands included restrictions on Canada's ability to establish new trade agreements with other countries.
The Canadian leader further claimed that US negotiators had made unacceptable demands involving the French language and Quebec culture. The dispute adds a political and cultural dimension to what began primarily as a trade confrontation.
The latest tariff measures mark another significant deterioration in US-Canada relations. Both countries have traditionally maintained close economic and security ties, but disagreements over trade policy have increasingly complicated the relationship.
For Canadian businesses, the tariffs could increase the cost of exporting goods into the US market, while American companies and consumers could also face higher costs for products affected by the measures. The impact will depend on the duration of the tariffs and whether the two governments return to negotiations.
For now, both Washington and Ottawa appear to be preparing for a prolonged confrontation. Trump's criticism and Carney's decision to retaliate have raised the possibility of further tariff measures, even as both sides remain economically interconnected.
