Canadian Prime Minister Mark Carney has declared Canada is effectively “at war” with the United States over trade, as President Donald Trump’s new 50% tariffs on Canadian goods push relations between the two longtime allies to a new low. Carney, vowing retaliation, said Canada has the “reserves,” “resilience” and “plan” to fight back against what he called an attempt to pressure Ottawa into a bad deal.
“We were attacked. You’re at war when you get attacked. We got attacked.”
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Carney says Canada is ready to respondSpeaking to reporters Saturday, Carney described the latest US tariff action as an attack on Canada and rejected pressure from Washington to accept what he characterized as a bad trade deal.
“We were attacked. You’re at war when you get attacked. We got attacked,” Carney said. “That’s fine. We’ve got the reserves. We’ve got the resilience. We’ve got the plan. We’ve got the focus. We will respond.”
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The new US duties cover an estimated $28 billion worth of Canadian imports, including products such as beer, cheese and electronics. They are also being imposed alongside existing tariffs on major Canadian exports including aluminum, lumber, vehicles and steel.For Canadian companies and workers dependent on the US market, the expanded tariffs could create fresh economic pressure.Trump fires back at CanadaTrump responded Sunday with a sharp message directed at Ottawa, accusing Canada of seeking the advantages of close ties with the US while refusing to become part of the country.
“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. No more!!!” Trump declared on Truth Social.
Trump has repeatedly suggested that Canada could become the 51st US state, an idea that has become another source of friction between the two governments.
The president has also criticized Canada’s trade policies, particularly tariffs affecting American agricultural products.
Carney calls it a fight over sovereigntyFor Carney, however, the dispute goes well beyond the price of imported goods.
“It’s a power play. And it becomes a question of sovereignty,” he said. “We’re a proud independent country. We’ve got the right values. We’ll make our decisions about who we want to trade with and how, and including on how we work with the United States and other partners.”
Carney blamed the collapse of recent trade negotiations on last-minute demands from the Trump administration.
He also alleged that Washington was seeking changes involving Canada’s French language, Quebec culture and Canadian identity as part of negotiations over the tariffs.
“This is no longer about a trade deal, it is about a takeover of Canada’s sovereignty and identity,” Carney said.
The disagreement partly centers on whether language and cultural barriers in Quebec create obstacles for US businesses seeking access to the Canadian market.
Canada sets September retaliation dateCarney has promised a direct response to the new US tariffs. Canada’s retaliatory tariffs are scheduled to take effect on Sept. 8, with Carney saying Ottawa will match the US measures “dollar for dollar.”
That raises the prospect of another round of tit-for-tat tariffs between the two countries.
US Trade Representative Jamieson Greer has already warned that Washington would respond if Canada retaliates.
“For decades, Canada has enjoyed the most favorable access to the U.S. market of any country. And from the beginning of President Trump’s trade program, Canada has continued to enjoy the best treatment in the world,” Greer said in a Friday statement.
Trade war could become a political issueThe escalating dispute could also have consequences beyond trade and business.
The Canada-US economic relationship is particularly important for states such as Michigan and Maine, where cross-border commerce is significant. The trade fight could therefore become an issue in Senate races in both states.
Trump is using Section 338 of the Tariff Act of 1930 to impose the latest duties. The provision gives the president authority to impose tariffs of up to 50% on imports from countries determined to discriminate against American commerce.
With Carney declaring that Canada was “attacked” and preparing dollar-for-dollar retaliation, the latest tariff dispute is rapidly turning into a broader confrontation over trade, sovereignty and the future of the US-Canada relationship.