Trump Escalates Tensions With Canada as Ottawa Readies Retaliatory Tariffs
Tensions between Donald Trump and Canada have intensified as the trade dispute between Washington and Ottawa deepens. The US president criticised Canada in a post on social media, while Canadian officials said retaliatory tariffs on some US goods will take effect on Sept. 8.
In the post, Trump wrote that Canada wants to enjoy the benefits of being a “US state” without being part of the United States. He also accused Canada of imposing heavy tariffs on American agricultural products over the years and added that this situation would no longer continue.
On the other side, Canada’s prime minister announced yesterday that his country’s retaliatory tariffs on US goods, including in the steel and dairy sectors, will come into force on Sept. 8. He made the announcement in response to the latest tensions with Washington.
Mark Carney said Canada cannot control the “storm” blowing from Washington, but it can take a new path by strengthening its domestic capacity and diversifying its trade relations. He also said the gap between the US role as a “partner” and as a “competitor” has remained wide in recent days.
According to the Canadian prime minister, he has instructed the country’s negotiators to return to Ottawa. Carney added that Canada will not accept the American side’s proposals and will not concede to the demands raised by Washington.
He also pointed to Canada’s role in supplying energy to the United States, saying that a large share of the US’s modest trade deficit in goods is due to energy purchases from Canada. According to him, Canada supplies 99 percent of US natural gas imports, 85 percent of electricity imports and 60 percent of crude oil imports.
The United States and Canada are among the closest trading partners in North America, and any tariff tensions between the two countries could affect supply chains, the energy market and regional goods trade.
