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Trump administration warns trade war would be ‘devastating’ for Canada

US President Donald Trump clenches his fist after speaking at a campaign rally for US Senator Darline Graham at Myrtle Beach Convention Center in Myrtle Beach, South Carolina on August 21, 2026. (AFP Photo)
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US President Donald Trump clenches his fist after speaking at a campaign rally for US Senator Darline Graham at Myrtle Beach Convention Center in Myrtle Beach, South Carolina on August 21, 2026. (AFP Photo)
August 23, 2026 05:32 PM GMT+03:00

The Trump administration warned Sunday that Canada would be “foolish” to believe it could win a trade war with the United States, predicting severe economic consequences as both countries prepare higher tariffs.

Trade negotiations between Washington and Ottawa broke down late Friday, triggering new 50% U.S. tariffs on about $20 billion worth of Canadian goods, equal to roughly 5.5% of Canada’s exports to the U.S.

Canada responded by announcing matching tariffs on U.S. goods, including measures targeting the steel and dairy industries, which are set to take effect Sept. 8.

Canadian Prime Minister Mark Carney speaks at a press conference in Ottawa, Ontario, on August 22, 2026 after trade talks with the US collapsed. (AFP Photo)
Canadian Prime Minister Mark Carney speaks at a press conference in Ottawa, Ontario, on August 22, 2026 after trade talks with the US collapsed. (AFP Photo)

US official predicts Canada will return to talks

U.S. Transportation Secretary Sean Duffy said Canada benefits more from bilateral trade than the United States and warned against confronting President Donald Trump over tariffs.

“We’re great trading partners, right? But Canada gets the benefit of trading with the U.S. way more than the U.S. gets the benefit of trading with Canada,” Duffy told “Fox News Sunday.”

“To think that they’re going to go to war with Donald Trump and actually win that war with the U.S., I think it’s foolish on their part,” he added.

Duffy predicted Canadian Prime Minister Mark Carney would return to negotiations “very, very quickly” because the dispute would be “devastating for his country.”

Carney defends retaliatory tariffs

Carney remained defiant Saturday, saying Canada had walked away from what he described as a “bad deal” and would retaliate against the new U.S. tariffs.

“You’re at war when you get attacked. We got attacked,” Carney said.

Trump responded early Sunday on Truth Social, writing, "Canada wants the benefits of being a State, without being one!!!”

“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” he added.

August 23, 2026 05:32 PM GMT+03:00
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