Carney declares Canada ‘at war’ with US over trade
The Canadian Prime Minister accused Donald Trump of miscalculating by escalating tariff attacks, marking a sharp rhetorical shift in the bilateral dispute.
Canadian Prime Minister Mark Carney has declared that Canada is now “at war” with the United States, a stark characterisation of the escalating trade dispute between the two nations. In a statement released on Saturday, Carney accused US President Donald Trump of miscalculating by intensifying his tariffs attack on the country.
The declaration follows the abrupt breakdown of bilateral trade negotiations late on Friday. Ottawa withdrew from the talks to protect its sovereignty, with Carney arguing that the American side had “asked too much and offered too little.” This move represents a significant escalation in the ongoing conflict, shifting the focus from diplomatic negotiation to direct economic confrontation.
At the centre of the dispute is a US imposition of 50 per cent tariffs on $20 billion worth of Canadian goods. The duties were scheduled to take effect after a last-minute three-day delay issued by Trump on 21 August, who had cited major progress in talks. However, US Trade Representative Jamieson Greer stated that Canada had rejected a trade deal offer, leading to the suspension of negotiations.
Carney has vowed a “dollar-for-dollar” retaliatory match against the new US duties. This stance has garnered support from across the Canadian political spectrum, including Conservative opposition leader Pierre Poilievre and Ontario Premier Doug Ford. Poilievre argued that Canada cannot accept one-sided tariffs that would deindustrialise the country, while Ford expressed full support for a strong response.
The timeline of the dispute began in early August when Trump declined to renew the North American free trade agreement (USMCA). Canadian negotiators, led by Dominic LeBlanc, subsequently began a two-week period of talks in Washington. The failure of these talks to reach a consensus has now resulted in what Carney describes as a state of war, with both nations preparing for a prolonged period of economic friction.
The Financial Times reports that the “at war” language is likely rhetorical rather than a formal declaration of military conflict, but it signals a hardening of Canada’s stance. Investors and institutions are now watching for the specific details of the retaliatory measures Ottawa plans to implement in response to the 50 per cent tariffs.
