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US warns trade war to be "devastating" for Canada after Carney's retaliatory tariff threat

FILE PHOTO: U.S. President Donald Trump and Canada's Prime Minister Mark Carney meet in the Oval Office at the White House in Washington, D.C., U.S., October 7, 2025. REUTERS/Evelyn Hockstein/File Photo
US and Canada escalate a trade dispute with new tariffs as President Donald Trump predicts Canadian PM Mark Carney will soon return to negotiations. - REUTERS/Filepic
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U.S. Transportation Secretary Sean Duffy said on Sunday that Canada would be "foolish" to believe it could win a trade war against the United States, warning that the economic consequences for Canada could be "devastating".

He predicted that Canadian Prime Minister Mark Carney would return to the negotiation table "very, very quickly".

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The remarks came after trade disputes between the two countries dramatically escalated recently.

After the collapse of U.S.-Canada trade talks, the United States announced on Saturday that it would impose a 50-percent tariff on 20 billion U.S. dollars' worth of Canadian goods, effective just after midnight.

In response, Prime Minister Carney quickly announced that Canada would levy retaliatory tariffs on U.S. goods beginning September 8.

U.S. President Donald Trump posted on Truth Social on Sunday that Canada wants the benefits of being a U.S. state, "without being one", adding this couldn't go on anymore.

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