The tensions between the U.S. and Canadian governments may have started as economic, but they’re increasingly becoming more personal.
Canadian Prime Minister Mark Carney took a shot at U.S. Commerce Secretary Howard Lutnick after the Trump administration official said Canada had purposefully scuttled trade talks for political purposes.
“I don’t think, with all respect, appointed, unelected Cabinet members in the United States are experts on Canadian politics,” Carney said during a news conference Thursday. “We are always going to stand up for what’s in the best interest of Canada.”
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Negotiations between the two countries collapsed in August. Since then, the U.S. has imposed a 50% tariff on $20 billion worth of Canadian goods. Canada will begin retaliatory tariffs next week. The Trump administration has already threatened a 50% tariff on all Canadian cars and car parts starting January 1.
Deal blockades
Despite the back and forth between officials, Carney said Canada is hopeful a deal can be struck with the U.S.
“We’re ready to sit down and strike that deal when the Americans are ready,” he said.
That may be a while, though. Lutnick, on CNBC, said the country had treated Trump “disrespectfully” and predicted once the country’s special elections are over in mid-October, they’ll be much more open to settling the matter with the U.S.
Trump did not seem open to immediate further talks either, in a recent social media post.
“It is very good for Canadian Politicians like Prime Minister Carney to make President Donald J. Trump ‘the enemy,’ until their Economy collapses,” Trump wrote. “Then it will prove to be very bad for Politics — Worse than anything that has ever happened to a Canadian Politician. Just watch!”
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A strained friendship
The U.S. and Canada have been good neighbors for most of their history — and rely heavily on each other economically. More than 66% of Canada’s total exports in July went to the U.S., though that’s down considerably from 72.64% a year ago. Roughly 49% of Canada’s total merchandise imports come from the United States.
Canada is the second-largest trade partner of the U.S., and is responsible for 12.5% of the country’s total trade, beating China and Taiwan combined. But the two sides have been at odds, off and on, since Trump began his second administration. Each country says the other has been making unreasonable demands. Carney, for instance, said Canadian French-language requirements were one of the issues that became a sticking point in the trade talks.
“There are a few issues that the United States was arguing right up to the last hour,” he said. “Red lines weren’t going to change ... ‘our way or the highway, take it or leave it,’ you know, attitude.”
Lutnick has denied that, saying, “Do I care about how that Quebecois speak? I mean, what could matter less to America? We don’t care. So the fact is, we never brought those words up. This is manufactured.”
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Chris Morris is a veteran journalist with more than 35 years of experience at many of the internet's biggest news outlets. In addition to his activities as a writer, reporter and editor, Chris is also a frequent panel moderator and speaker at major conferences, including CES and South by Southwest.
