Tariff Dispute: Warning of "Trade War" Between the US and Canada
Following collapsed negotiations, Canada and the United States risk sliding into an open-ended tariff conflict. An expert is warning of high costs, US corporations are calling for new talks, and criticism of Trump is coming from Canada.
The tariff dispute between the US and Canada is fueling fears of a full-blown trade war between the neighboring countries. "Should Ottawa match the tariffs and Trump respond with escalation, both sides would enter a costly and damaging spiral of retaliatory measures," wrote Richard Fontaine, head of the Center for a New American Security, on the platform X.
That is precisely what Canadian Prime Minister Mark Carney announced he would do. He said at a press conference that he intended to respond to US President Donald Trump's tariff announcement with equivalent counter-tariffs on US products. When a journalist asked why there was the impression of a trade war, Carney said: "When you are attacked, you are at war — we have been attacked."
Collapsed Negotiations
Until late into Saturday night, negotiators from both countries had been discussing an agreement to avert the tariffs. Trump had announced new tariffs of 50 percent in July on a range of products, including hockey sticks, furniture, and wine. Canada's counter-tariffs are now set to take effect on September 8.
According to US officials, no new talks are currently planned — despite demands from the business community. The influential US business group Business Roundtable, for example, called on the governments in Washington and Ottawa to negotiate. The new tariffs threatened to drive up costs for US companies, the lobbying group stated. Consumers would also be affected.
