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Add us on GoogleThe Canada-U.S. trade war has heated up again, after negotiations fell apart on Aug. 21, shortly before a deadline that established new, 50% tariffs on a range of Canadian exports.
Reactions to the new tariffs have been fiery on both sides of the border.
California Governor Gavin Newsom’s blistering response to the tariffs, for one, was unfiltered to say the least.
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On Aug. 22, Newson made a post on social media platform X that said, “Our closest ally. Our critical trading partner. And Trump is hitting Canada with 50% tariffs. What the actual f— are we doing?”
Tariff standoff
The trade war with Canada began as President Donald Trump started his second term, with Trump stating on his first day in office that he planned to levy 25% tariffs on Canada.
Since then, the U.S. has levied tariffs on goods that aren’t compliant with the U.S.-Mexico Canada Agreement, as well as on imports such as steel and aluminum, and Canada has responded with counter-tariffs.
The most recent trade talks, which collapsed on Aug. 21, had been to “stave off punishing new tariffs by the Trump administration on Canadian goods,” the New York Times reported.
Canada’s Prime Minister Mark Carney said he ceased the talks after the U.S. introduced terms at the last-minute that he said were “unfair, uneconomic, and called into question the reliability of any deal,” the Times report says.
U.S. Trade Representative Jamieson Greer told reporters that “Canada declined to finalize the trade deal under the terms agreed earlier this week, despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market,” according to the Times.
“New demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” Greer said.
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Escalating threats
President Trump has, since the trade standoff began in 2025, made remarks threatening Canada’s sovereignty, referring to it as “the 51st state,” and repeatedly referring to the prime minister as “governor.”
On August 24, Trump said on social media that Canadian leaders should “fall in line” or face consequences “far WORSE!” He went on to claim in the post that Canada’s unemployment rate “is now at 10%, and rapidly rising,” when in fact it currently sits at 6.4%, and has fallen by 0.5% since April.
The New York Times reported that Trump’s latest tariffs “drew significant opposition, including in Washington, where congressional Democrats attacked the Trump administration — and even some Republicans — expressed alarm that the duties could cause domestic costs to rise.”
Maine Senator Susan Collins said in a statement, “Ever since the tariffs were first announced, I have heard from many businesses, farmers, and lobstermen concerned about the cost of navigating the tariffs, the lack of domestic supply chains, and the likely imposition of retaliatory tariffs by Canada,” the Times reported.
The Times noted that Collins has “clashed at times with the administration” and had said she was not expected to attend a rally in her state Monday with Vice President JD Vance.
At that rally in Maine, Vance also referred to Canada as a “state.”
“We have to remember, Canada is a state, sorry, Freudian slip. That was actually an accident,” Vance said through a smile. He continued on to say that Canada “is a country that has under-invested in its military, that quite literally would get invaded by a foreign country were it not for the umbrella of protection provided by the United States of America.”
Reports surfaced earlier this year that the Canadian Armed Forces has, in fact, been modelling scenarios of an invasion of Canada by a foreign country — the United States.
Gov. Newson reacted on X to Vance’s supposed Freudian slip in Maine, posting a video of the rally and writing, “Apparently alienating Canada with 50% tariffs wasn’t enough. Now we’re mocking them too. Brilliant strategy, guys.”
Canada’s Prime Minister Carney, meanwhile, has said that Canada will retaliate with its own “dollar for dollar” tariffs.
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
