Trump says Canada seeks ‘benefits’ of US statehood after trade talks break down
US President Donald Trump has said Canada wants “the advantages of being a state without actually becoming one” after trade negotiations between the two countries collapsed late on Friday.
In his first remarks since the talks failed, prompting new US tariffs of 50% on a selection of Canadian products, Trump also claimed American farmers had faced “enormous tariffs” for many years.
His comments followed Canadian Prime Minister Mark Carney’s description of the new duties as a “miscalculation” intended to “damage and divide us”.
Carney confirmed that Canada would respond to Trump’s measures “dollar for dollar” from 8 September, imposing tariffs on products including steel, dairy goods, household appliances and electronics. He said the US and Canada were now in a trade “war”.
“They demanded too much and gave too little,” Carney said on Saturday. “When you are attacked, you are at war. We were attacked,” he added.
Trump’s latest statement reflects his repeated suggestions since returning to office that Canada should become America’s “51st state”, remarks that have angered many Canadian politicians and citizens.
The failure of the negotiations has disrupted a closely connected trading partnership, with no obvious route toward a settlement.
“We cannot agree to what they proposed, and we will not provide what they demanded,” Carney said.
Earlier in the week, both governments had expressed confidence that an agreement was possible, but negotiations unravelled after each side accused the other of introducing changes at the last moment.
The new 50% US duties will affect various Canadian products and come on top of existing American tariffs on Canadian steel, aluminium, vehicles and lumber.
The measures are relatively narrow, applying to roughly $20bn (£15bn; C$28bn) of Canadian imports, or around 5% of the total. Products affected include wine, dairy, cement, clothing and hockey equipment.
The prime minister said Canada was responding “reluctantly” in order to defend its economic interests. Further information about the countermeasures would be published in the coming days, he added.
Leaders of Canada’s other federal parties, including the opposition Conservatives, expressed support for the prime minister, along with several provincial leaders.
Tariffs, which are taxes imposed on goods imported from abroad, have been central to Trump’s trade strategy. The US president argues that they will strengthen domestic manufacturing and generate American jobs.
Opponents argue, however, that tariffs increase costs for US consumers while disrupting trade and harming the wider global economy.
Carney’s address on Saturday was his first public statement to Canadians since announcing late on Friday that no agreement would be reached. He accused US officials of proposing “last-minute changes” that were both “unfair” and “uneconomic”.
American negotiators, in contrast, alleged that Canada had introduced “new demands and reversals” regarding conditions previously accepted.
On Saturday, US Trade Representative Jamieson Greer said there were currently no plans to restart negotiations.
He added that Washington had been willing to reduce some tariffs on Canadian goods under the proposed agreement.
Carney said the American terms were “unacceptable” and overly restrictive, including conditions that would limit Canada’s ability to negotiate future trade agreements with other nations.
He also denied that Canada had submitted new requests at the last minute. “We clarified what was being offered and were repeatedly disappointed by the responses,” he said.
Doug Ford, premier of Ontario, Canada’s most populous province, supported Carney and said Trump “cannot be trusted”.
British Columbia Premier David Eby said the US demand to limit Canada’s freedom to pursue other trade agreements “would make us the economic equivalent of the 51st state”.
“That was never acceptable to Canadians,” Eby said.
Conservative opposition leader Pierre Poilievre also appeared to back Carney, describing the latest American tariffs as “unjustified”.
Quebec’s premier, Christine Fréchette, warned that the new US duties would probably lead to job losses.
“There are real people behind these figures,” she said, promising measures to assist the sectors affected.
Alberta Premier Danielle Smith, whose energy-rich province has sought closer relations with the Trump administration, called on both governments to return to negotiations.
The breakdown follows more than a year of intermittent trade discussions. Negotiations intensified in recent weeks after Washington imposed a deadline for reaching an agreement or facing additional tariffs.
The two governments were also taking part in a compulsory review of the existing North American free-trade agreement with Mexico, known as the USMCA.
Trump signed the agreement during his first term, replacing the 1994 North American Free Trade Agreement. It supports approximately $1.6tn (£1.2tn) in yearly trade among Canada, the US and Mexico.
Earlier in the summer, Canada and Mexico formally asked for the USMCA to be extended for another 16 years. The US, however, refused to renew the agreement in its present form.
Asked how Friday’s failed negotiations might affect the North American trade pact, Carney said the development was “certainly not good news”.