US Treasury Secretary Scott Bessent compared Canada to a small dog. He made the comparison after Canada and the US failed to reach a trade deal, likening Canada to a small dog barking at and annoying a much bigger dog. In an interview with Fox News, Bessent said:
“I once had a German Shepherd. A small dog in the park would keep barking at it. The situation reminds me of that. For a long time, the German Shepherd ignored it. Then one day, it ran out of patience.”
He also accused Canadian Prime Minister Mark Carney of rejecting an excellent trade deal. The US and Canada failed to reach an agreement after three days of trade talks held from August 19 to 21.
PM Mark Carney said the US had changed the terms of the deal at the last minute. The US, however, said it had made a good offer.
Bessent says Canadian tariffs will have little impact on the US
US Treasury Secretary Scott Bessent also said that a trade war with Canada would have only a very small impact on prices in the US.
Bessent made the comments as he and Canadian Prime Minister Mark Carney have continued to trade statements against each other in recent weeks.
Earlier, Bessent had also accused Carney of being more concerned about his political image than about what was best for the Canadian economy.
Trump imposed 50% tariff on Canada
US President Donald Trump imposed a 50% tariff from August 22 on $20 billion (around ₹1.9 lakh crore) worth of goods from Canada after the two countries failed to reach a trade deal.
The tariff covers around 5% of all goods Canada sends to the US. PM Carney described the tariff as an attack on Canada. Speaking about the growing trade dispute with the US, he said, “We are at war because we have been attacked.”
Why did the US impose such a high tariff on Canada?
The US says some of Canada’s trade policies put American companies at a disadvantage. The two countries have been involved in long-running disputes over several issues, including automobiles, dairy products, alcohol and timber.
The US had initially announced that the new tariffs would come into effect from August 20. However, just before the deadline, both countries decided to start talks. Trump then extended the tariff deadline by three days to give the two sides more time to reach a deal.
According to US officials, the two countries had reached an agreement on several issues, but failed to agree on some key matters.
1. US accuses Canada of discriminating against American cars
The US has long complained that Canada’s trade policies do not give American car companies an equal opportunity in the Canadian market.
The US wants Canada to open its market further to American cars and other goods.
In return, Canada sought relief from US tariffs on steel, aluminium, cars and timber. However, the US was not willing to remove these tariffs.
2. Canada protects its dairy market
Canada has long maintained several rules to protect its dairy market from foreign companies and cheaper dairy products.
The US wants its milk, cheese and other dairy products to have easier access to the Canadian market.
However, Canada has not been willing to offer greater concessions on its dairy sector. Differences between the two countries remain on this issue.
3. Restrictions on sales of American alcohol
Some parts of Canada have also imposed restrictions on the sale of American alcohol. The US sees this as discrimination against its products.
The US wants its alcohol products to be allowed greater access to the Canadian market.
The two countries have also had a long-running dispute over Canadian softwood lumber. The US has imposed various trade restrictions and duties on timber imported from Canada.
Canada’s retaliatory tariffs on the US
Canada announced retaliatory action after the US imposed its 50% tariff. Prime Minister Mark Carney said Canada would respond to US tariffs dollar-for-dollar.
This further increased trade tensions between the two countries. The US and Canada are among each other’s biggest trading partners, so higher tariffs are expected to affect businesses and the prices of goods in both countries.
3 other major disputes between the US and Canada
1. Calling Canada the 51st state
Trump has repeatedly spoken about making Canada the 51st US state. Trump says the US gives Canada billions of dollars in benefits through trade. He argues that if Canada became part of the US, disputes over trade imbalances and tariffs would automatically end.
2. Calling Trudeau Canada’s governor
Trump repeatedly referred to former Canadian Prime Minister Justin Trudeau as ‘governor’ in a mocking tone. Canadian leaders and the public viewed the remarks as an insult to the country’s sovereignty.
3. Border security, illegal immigration and fentanyl smuggling
Growing concerns over border security have also become a major source of tension between the US and Canada. The Trump administration has accused Canada of allowing illegal migrants to enter the US through its northern border and of allowing the trafficking of dangerous drugs, particularly fentanyl. The US has demanded that Canada strengthen monitoring of its borders and adopt stricter immigration policies.