Adedokun Waliyu 
President Donald Trump speaks at the funeral of Sen. Lindsey Graham, R-S.C., at the Washington National Cathedral, Tuesday, July 28, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
The Trump administration has warned that Canada would be “foolish” to think it could win a trade war with the United States, predicting that the economic impact would be “devastating” for its northern neighbour.
Negotiations between Washington and Ottawa broke down late Friday, putting new 50 per cent US tariffs into effect on about $20 billion worth of Canadian goods, representing 5.5 per cent of Canada’s exports to the United States.
Canada, in retaliation, announced that it would match the US tariffs, with new levies targeting the US steel and dairy industries scheduled to take effect on September 8.
US Transportation Secretary Sean Duffy said Canada would come out worse from a trade war with President Donald Trump.
The United States currently accounts for roughly 70 per cent of Canadian exports.
“We’re great trading partners, right? But Canada gets the benefit of trading with the US way more than the US gets the benefit of trading with Canada,” Duffy said.
“To think that they’re going to go to war with Donald Trump and actually win that war with the US, I think it’s foolish on their part.”
He predicted that Canadian Prime Minister Mark Carney would return to negotiations “very, very quickly” because the consequences would be devastating for Canada.
Carney, however, remained defiant, announcing retaliatory tariffs on the United States after rejecting what he described as a “bad deal” and walking away from negotiations.
“You’re at war when you get attacked. We got attacked,” Carney said.
The Canadian prime minister cited last-minute US demands that would restrict Canada’s ability to negotiate trade deals with other countries, as well as what he described as unacceptable “threats” to the French language and Quebec culture.
Trump responded by accusing Canada of seeking the benefits of being a US state without actually becoming one.
“Canada wants the benefits of being a State, without being one!!!” Trump said.
He also accused Canada of imposing heavy tariffs on US farmers for many years.
‘Bully in Washington’
The latest confrontation highlights the deepening rift between the two long-time allies since Trump returned to the White House, including his repeated threats to make Canada the 51st US state.
Carney has said the bilateral relationship has been permanently changed and that Canada must reduce its dependence on the United States.
Despite the potential economic fallout, the Canadian prime minister has gained political support at home for his tougher stance toward Washington.
“We have a bully in Washington,” Canadian retired teacher Stuart Edwards said in Fort Erie, Ontario, near the Peace Bridge, a major route for billions of dollars in annual trade between the two countries.
“We’re not going to put up with it; Canada isn’t. We’ll fight back,” he said.
During recent negotiations in Washington, Canada sought exemptions from Trump’s tariffs on automobiles, steel and aluminium, which have affected the country’s economy, contributed to job losses and strained the traditionally close trade relationship.
The White House has accused Canada of imposing discriminatory duties on US alcohol, automobile and dairy products.
US Trade Representative Jamieson Greer said the United States had offered to reduce its tariffs on steel, aluminium and automobiles, as well as remove a recently imposed tariff on Canadian lumber.
According to Greer, the proposed measures would have given Canada “the most preferential treatment of any trading partner.”
However, he said no new talks had been scheduled with Canadian negotiators.
