US President Donald Trump has said Canada wants “the benefits of being a state, without being one” after trade talks between the two countries collapsed late on Friday.
The breakdown of negotiations triggered new 50% US tariffs on a range of Canadian goods. Trump also said American farmers had been charged “massive amounts of Tariffs” for years.
Canadian Prime Minister Mark Carney called the fresh tariffs a “miscalculation” designed to “hurt and divide us”.
Carney confirmed he would match Trump’s tariffs “dollar-for-dollar” from 8 September, including levies on steel, dairy, appliances and electronics, saying the US and Canada were now in a trade war.
Both countries were optimistic of a deal earlier in the week, but talks fell apart after both sides accused the other of making last-minute changes.
“They asked too much and they offered too little,” Carney said on Saturday. “You’re at war when you get attacked. We got attacked.”
Trump’s latest comments echo his repeated references to making Canada the “51st state” of America since returning to office, sparking frustration among its leaders and residents.
The collapse of the trade talks upended a deeply integrated trading relationship with no clear path to resolution.
“We cannot accept what they’ve offered and we will not give what they’ve asked,” Carney said.
Trump told Fox News on Sunday that the Canadians were “foolish” to engage in a trade war with the US and think they will “actually win”.
The new 50% US tariffs will apply to a range of Canadian goods, in addition to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.
They are limited in scope, covering about $20bn (£15bn; C$28bn) of imports from Canada, or about 5% in total, including wine, dairy, cement, clothing and hockey equipment.
The prime minister said Canada was retaliating “reluctantly” to protect its interests, with details of counter-measures to be released in the coming days.
Carney faces crucial test after walking away from Trump’s deal
Leaders of other federal parties in Canada, including the Conservative opposition, voiced support for the prime minister, as have the leaders of some Canadian provinces.
Tariffs – a tax on goods imported from other countries – have been a key component of Trump’s trade policy, with the US president arguing that they will boost American manufacturing and create jobs at home.
Critics, however, say tariffs have raised prices for American consumers, and have disrupted and damaged the global economy.
Carney’s speech on Saturday was his first address to Canadians after he announced late on Friday night that a deal would not be reached, accusing the US side of making “last-minute changes” that were “unfair” and “uneconomic”.
US negotiators, meanwhile, accused Canada of making “new demands and walk backs” on terms which had been previously agreed.
US trade representative Jamieson Greer told Fox News on Saturday that there were no plans to resume talks.
He added that the US had been prepared to cut some of its tariffs on Canada as part of the ill-fated deal.
Carney, however, said the US presented “unacceptable” terms that were too restrictive, including curbing Canada’s ability to strike new trade deals with other countries.
He also rejected the assertion that Canada had made last-minute requests: “We clarified what was on offer and were continually disappointed by the answers.”
Source:Fiilafmonline/BBC
