{"id":5775,"date":"2026-08-22T21:43:48","date_gmt":"2026-08-22T21:43:48","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=5775"},"modified":"2026-08-22T21:43:48","modified_gmt":"2026-08-22T21:43:48","slug":"youre-at-war-when-you-get-attacked-canadas-mark-carney-accuses-u-s-of-using-economic-integration-as-a-weapon-as-trade-fight-spurs-tariff-hikes","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=5775","title":{"rendered":"\u2018You\u2019re at war when you get attacked\u2019 \u2014 Canada\u2019s Mark Carney accuses U.S. of using economic integration as a weapon as trade fight spurs tariff hikes"},"content":{"rendered":"
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Each side blamed the other for the collapse of negotiations in Washington late Friday, leading the U.S. to impose 50% tariffs on\u00a0$20 billion worth of Canadian goods\u00a0and Canada setting Sept. 8 as the start of its retaliatory penalties.<\/p>\n

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President Donald Trump\u2019s import taxes will hit about 5% of what\u00a0Canada ships to the United States\u00a0every year, ranging from hockey sticks to tongue depressors. Prime Minister Carney said Ottawa would respond with targeted tariff protection for industries exposed to the new U.S. duties, including some steel products. He also mentioned the dairy, appliance, agricultural equipment, pulp and paper and electronics sectors.<\/p>\n

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No further talks were planned. Whatever the eventual outcome, a loss of trust seems one of the earliest casualties.<\/p>\n

Carney accused Washington of using \u201ceconomic integration as a weapon\u201d and said \u201cits signature was written in pencil.\u201d Resorting to the language of battle, he said his country had been \u201cattacked\u201d by the new American tariffs. \u201cYou\u2019re at war when you get attacked,\u201d he said, adding that Canada had the reserves, resilience and plan to respond.<\/p>\n

But to Trump\u2019s chief trade negotiator, Jamieson Greer, the U.S. was compelled to act after a year of retaliation by its longtime partner.<\/p>\n

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\u201cWe\u2019ve said enough, and so we\u2019ve taken countermeasures. Our interest is in protecting American workers and protecting American supply chains,\u201d the U.S. trade representative told \u201cFox & Friends Weekend.\u201d<\/p>\n

Canada cites \u2018unacceptable demands\u2019 as US says it offered favorable terms<\/h4>\n

Carney said Canada had been willing to drop remaining retaliatory tariffs on steel, aluminum and autos if the U.S. substantially lowered its own, and to encourage provinces to restore U.S. alcohol sales. But he said Washington\u2019s final demands went too far. \u201cThey asked too much and offered too little,\u201d Carney said.<\/p>\n

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Greer said the Republican administration was offering to cut tariffs on steel, autos and lumber, \u201cthings that are sensitive for them. And they\u2019ve always had the best deal, and they still would have an even better deal, but they didn\u2019t want that.\u201d<\/p>\n

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As a result, he said, \u201cWe\u2019re moving forward with measures that respond to Canadian retaliation.\u201d<\/p>\n

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Carney said the U.S. added last-minute terms that would have reduced tariff relief for Canadian-made vehicles, restricted Canada\u2019s ability to strike trade deals with other countries and weakened protections for language, culture and sovereignty.<\/p>\n

He said such demands were \u201cunacceptable.\u201d<\/p>\n

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The breakdown in negotiations marked a sharp reversal from two days earlier, when officials from the two countries sounded as if they were headed toward a compromise.<\/p>\n

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Ontario Premier Doug Ford, who leads Canada\u2019s most populous province, praised Carney for rejecting the deal, saying it would have hurt Ontario\u2019s auto, steel and manufacturing sectors. Ford urged Canada to use \u201cevery tool in our toolbox\u201d to fight the U.S. tariffs.<\/p>\n

The moves also call into question the future of a\u00a0North American trade agreement\u00a0covering the United States, Canada and Mexico that is crucial to industry in all three countries.<\/p>\n

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Carney said the breakdown was \u201ccertainly not good news\u201d for the review of that agreement and that the failed negotiations had given Canada \u201ca new perspective\u201d on what Washington wants from the broader economic relationship.<\/p>\n

A typically cooperative alliance goes sour<\/h4>\n

The political impact will likely be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services last year.<\/p>\n

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The tariffs were initially supposed to kick in at 12:01 a.m. Wednesday. Trump extended the deadline for three days to allow talks to continue, but the countries could not reach an agreement in time.<\/p>\n

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The U.S. and Canada have wrangled for decades over trade, poking each other over sore spots such as Canadian softwood lumber imports and U.S. access to Canada\u2019s protected dairy market.<\/p>\n

Somehow, they still managed to remain friends, allies and trading partners. Canadian soldiers fought alongside Americans in Afghanistan after 9\/11. The 5,525-mile U.S.-Canada border is undefended, and\u00a0nearly 330,000 people\u00a0and $2 billion worth of goods cross it every day; 800,000 Canadians live in the United States.<\/p>\n

Trump\u2019s approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries. Trump has imposed tariffs on Canadian goods in a push to bring manufacturing back to the United States and made inflammatory comments about\u00a0turning Canada into America\u2019s 51st state.<\/p>\n

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Carney said Canada had recognized that \u201cAmerica has changed\u201d and that the two countries would \u201cnot return to our old relationship.\u201d<\/p>\n

Canadians and Americans are frustrated<\/h4>\n

The Canadian public is fed up. A petition to expel U.S. Ambassador Pete Hoekstra, a Trump ally, has collected nearly 248,000 signatures since July 21. It accuses the former Republican congressman from Michigan of having \u201cnormalized\u2019\u2019 Trump\u2019s talk of annexing Canada, among other things.<\/p>\n

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The two countries had good reasons to find a compromise.<\/p>\n

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Nearly\u00a072% of Canada\u2019s goods\u00a0exports last year went to the United States. The Trump administration might be wary of imposing new tariffs \u2014 paid by U.S. importers who try to pass along the cost to consumers via higher prices \u2014 before the November midterm elections. American voters are already frustrated with the high cost of living.<\/p>\n

\u201cBoth sides will be under immense pressure in the coming days to still find an off-ramp,\u201d said Ryan Majerus, a partner at King & Spalding and a former U.S. trade official.<\/p>\n

Joshua Bolten, CEO of the Business Roundtable, which represents leaders of major U.S. companies, warned the tariffs and retaliation risk \u201craising costs for American businesses and families\u201d and disrupting vital supply chains, and urged both governments to resume negotiations.<\/p>\n

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Trump has turned to Depression-era trade penalties<\/h4>\n

Trump has made tariffs the centerpiece of his second-term economic agenda. Last year, he imposed double-digit import taxes on almost every country, justifying them by declaring the long-standing U.S. trade deficit a national emergency. The Supreme Court in February ruled that he had overstepped his authority. The justices struck down the trade penalties and set the stage for the federal government to\u00a0pay refunds to importers.<\/p>\n

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So Trump has looked for other legal authority to justify tariffs.<\/p>\n

After the Supreme Court struck down much of Trump\u2019s earlier tariff program in February, the administration turned to other legal authorities. For Canada, Trump invoked Section 338 of the Tariff Act of 1930, a rarely used Depression-era provision allowing tariffs of up to 50% against countries deemed to discriminate against U.S. businesses.<\/p>\n

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The provision is part of the Smoot-Hawley tariff law, widely blamed by economists and historians for worsening the Great Depression by restricting global trade. Section 338 has never previously been used to impose tariffs.<\/p>\n

The rift comes as the United States, Mexico and Canada are trying to renew a trade agreement that Trump negotiated in his first term and once praised as a triumph. The United States has begun formal talks with Mexico over revamping the US-Mexico-Canada Agreement, known as USMCA. But talks with Canada have not begun and escalating trade conflict casts doubt on whether they will.<\/p>\n

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U.S. will impose 50% tariffs on\u00a0$20 billion worth of Canadian goods,\u00a0and Canada set Sept. 8 as the start of its retaliatory penalties.<\/p>\n","protected":false},"author":1,"featured_media":5774,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tariffs"],"yoast_head":"\n\u2018You\u2019re at war when you get attacked\u2019 \u2014 Canada\u2019s Mark Carney accuses U.S. of using economic integration as a weapon as trade fight spurs tariff hikes - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=5775\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018You\u2019re at war when you get attacked\u2019 \u2014 Canada\u2019s Mark Carney accuses U.S. of using economic integration as a weapon as trade fight spurs tariff hikes - 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