US President Donald Trump has issued a fresh warning to Canada, saying it is time for Washington to show its northern neighbour that it cannot continue with what he described as unacceptable trade practices.
Trump made the remarks on Wednesday, just days after trade negotiations between the United States and Canada broke down. He said Washington had previously offered Ottawa what he considered a strong agreement, but claimed Canada had rejected the opportunity.
“I had a deal, that was a pretty good deal,” Trump said during an interview with Glenn Beck. He argued that the US could manage without Canadian goods, although some products could be more difficult to replace.
The latest confrontation follows Trump’s decision to impose new 50% tariffs on about US$20 billion worth of Canadian imports on Saturday after negotiations between the two countries collapsed.
Canada responded on Tuesday by announcing matching tariffs on roughly US$20 billion of American goods each year. Ottawa has also introduced support measures for businesses and workers affected by the escalating trade dispute, with the retaliatory duties scheduled to take effect on 8 September.
The US president has also announced a separate 50% tariff on Canadian automobiles and parts, which is due to come into force on 1 January. Canada has said Washington’s refusal to extend tariff relief to medium- and heavy-duty vehicles was among the reasons the latest negotiations failed.
The dispute has raised fresh concerns about the economic relationship between two of North America’s closest trading partners. Businesses on both sides of the border could face higher costs if the tariffs remain in place or are expanded.
US Trade Representative Jamieson Greer said there were currently no active communication channels between Washington and Ottawa over the trade dispute, although he maintained that he had a good working relationship with Canadian Trade Minister Dominic LeBlanc.
Greer told the Canadian Broadcasting Corporation that Washington would not simply accept further retaliation from Canada without responding.
He said the United States would continue pursuing its own trade policy based on what the Trump administration believed was in the country’s best economic interests.
White House adviser Peter Navarro also warned that Canada could end up with a less favourable agreement if it eventually returns to the negotiating table.
Speaking on C-SPAN, Navarro claimed the terms previously offered by Washington would no longer be available and predicted any future deal would be less advantageous for Canada.
Navarro said he had been surprised that Ottawa rejected the earlier proposal, arguing that the agreement had been highly favourable to the United States and should have been accepted by Canada.
The latest exchange marks another escalation in the increasingly tense trade relationship between Washington and Ottawa, with both governments now preparing for additional tariffs while diplomatic efforts to reach a compromise remain stalled.
