"We Are at War": Canada and the US Slap Each Other with 50% Tariffs

Canadian Prime Minister Mark Carney said on Saturday that the country is effectively at war with the United States: "When you are attacked, you are at war. We have been attacked." His remarks came amid a sharp escalation of the trade dispute between the two longtime allies, after Washington imposed 50% tariffs on $20 billion (roughly 413 billion crowns) worth of Canadian imports.

How the Talks Collapsed

As recently as Tuesday, US President Donald Trump claimed a trade deal with Canada had been reached. But late Friday night, Carney called the proposed terms "unfair, uneconomic and damaging to trust in any future agreements." On Saturday morning, the US responded by introducing the new tariffs, while Canada announced it was suspending trade talks and vowed to impose mirror tariffs within two weeks.

"They demanded too much and offered too little," Carney said, accusing Washington of attacking his country. According to the Canadian side, the deal fell apart because of the US position, while sources in Washington claim it was Canada's additional demands that derailed the negotiations.

The new tariffs will affect about 5% of Canada's annual exports to the US. By comparison, trade between the two countries totaled $880 billion last year. Tensions have also been fueled by the Trump administration's decision in July not to renew the 2020 trade agreement with Canada and Mexico — one of the largest deals of its kind in the world.

Old Grievances and Talk of a "51st State"

Relations between the two countries were already strained. Since the start of his second term, Trump has repeatedly suggested that Canada should become the 51st US state, sparking outrage among its northern neighbors. Tensions were further inflamed recently by a dispute over a new bridge connecting a US city with the Canadian city of Windsor, as well as Trump's complaints about smoke from Canadian wildfires. Trump has now reiterated that Canada wants "to get the benefits of being an American state without actually being one."

Canadians Rally Behind Their Prime Minister

For Mark Carney, the current crisis marks one of the biggest political tests since he took office — Canada's economic prosperity has for decades relied on privileged access to the US market. Nevertheless, most Canadian politicians reportedly back the prime minister's tough stance. Ontario Premier Doug Ford voiced full support for Carney's "decisive response," and even his chief political rival, Conservative leader Pierre Poilievre, offered to help protect Canadian industries from "unfair" American tariffs.

According to a poll by the Canadian firm Léger, 56% of Canadians want the federal government to take a firm stance toward the US, while 31% favor a more flexible approach.

What Comes Next

Carney has promised to unveil details of Canada's countermeasures in the coming days, targeting American steel, dairy products, appliances, farm machinery, paper and electronics. He described the move as "a targeted response to protect Canadian industry" and its competitiveness in the domestic market. Trade associations representing North America's automotive, agricultural and forestry sectors have expressed alarm over the breakdown in talks, while the US Chamber of Commerce has called for both sides to return to the negotiating table immediately — though for now, the prospects of that happening remain uncertain.

Source: seznamzpravy.cz