U.S. warns Canada of ‘devastating’ impact from trade war
The Trump administration has warned Canada against escalating its trade dispute with the United States after negotiations between the two countries collapsed and new tariffs came into force, reports a Qazinform News Agency correspondent.
U.S. Transportation Secretary Sean Duffy said Sunday that Canada would suffer greater economic consequences from a prolonged trade confrontation, noting that the United States accounts for roughly 70% of Canadian exports.
Trade negotiations broke down late Friday, triggering new 50% U.S. tariffs on about $20 billion worth of Canadian goods, representing around 5.5% of Canada's exports to the United States.
Canada responded by announcing dollar-for-dollar retaliatory tariffs targeting U.S. products, including steel and dairy goods. The measures are scheduled to take effect on September 8.
Duffy predicted that Canadian Prime Minister Mark Carney would return to negotiations “very, very quickly” once the economic effects of the U.S. tariffs become apparent.
U.S. President Donald Trump also stepped up criticism of Canada on Sunday.
“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 wrote on Truth Social.
Carney, meanwhile, has accused Washington of attempting to “hurt and divide” Canada through its tariff policy and described the two countries as being “at war” over trade.
Earlier, Qazinform News Agency reported that U.S. President Donald Trump had paused planned 50% tariffs on nearly $20 billion worth of Canadian imports for three days after announcing that Washington and Ottawa had reached a trade agreement, subject to the completion of final documentation.