U.S. Transportation Secretary Sean Duffy warned Canada that a trade war with the United States would be “catastrophic” for the country, expressing confidence that Canadian Prime Minister Mark Carney would return to the negotiating table to reach a deal.
Duffy’s comments came after Carney announced retaliatory measures targeting U.S. steel and dairy products, rejecting what he described as a “bad trade deal” proposed by Washington.
“We are very good trading partners, but Canada benefits more from its trade with the United States than the United States benefits from its trade with Canada,” Duffy said.
“To imagine that they can engage in a war with Donald Trump and win that war against the United States is foolish on their part,” he added. “I think we will see Mark Carney back at the negotiating table very soon, because this would be catastrophic for his country.”
Carney has announced new Canadian tariffs set to take effect on September 8, targeting, among other sectors, the U.S. steel and dairy industries.
The retaliatory measures come in response to new additional U.S. tariffs of 50% that took effect this week and affect around 5.5% of Canadian exports to the United States.
Carney Halts Negotiations
After weeks of negotiations, the Canadian prime minister decided to suspend the talks on Friday, shortly before a White House deadline was set to expire.
“When you are attacked, you are at war. We were attacked,” Carney said, arguing that the United States had “asked for too much and offered too little.”
The latest escalation marks a further deterioration in trade relations between Washington and Ottawa, despite the two countries being among each other’s largest trading partners.
While the United States has increased pressure on Canada through new tariffs, Ottawa is now preparing retaliatory measures that could affect key American industries.
Duffy’s warning signals that Washington expects Carney to return to negotiations, while Canada has indicated it is prepared to respond to what it considers unfair U.S. trade measures.
The dispute is expected to test one of North America’s most important economic relationships as both governments weigh the political and economic consequences of a prolonged trade confrontation.
