Trump admin warns US-Canada trade war will be 'devastating' for Canada

The Trump administration on Sunday warned that Canada would be "foolish" to think it could win a trade war with the United States, predicting a "devastating" impact on its northern neighbor.

Why did the US-Canada trade war escalate?

Negotiations between Washington and Ottawa broke down late Friday, triggering new 50 percent US tariffs on Canadian goods. Canada responded with matching retaliatory tariffs, deepening the standoff between the two longtime allies.

Negotiations between Washington and Ottawa broke down late Friday, putting into force new 50-percent US tariffs impacting about $20 billion worth of Canadian goods, or 5.5 percent of Canadian exports to the United States. Canada, in retaliation, said it would match US tariffs, with new levies targeting the US steel and dairy industries set to take effect on September 8.

What did the Trump administration say about Canada?

US Transportation Secretary Sean Duffy said Canada would come out worse from tussling with President Donald Trump in a trade war. "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," he told the "Fox News Sunday" talk show.

"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," Duffy said. He predicted that Canadian Prime Minister Mark Carney would return to negotiations "very very quickly, because it's going to be devastating for his country."

How has Canada responded to the tariffs?

Carney was defiant on Saturday, announcing retaliatory tariffs on the US after walking away from a "bad deal" on trade as the rift between the longtime allies deepened. "You're at war when you get attacked. We got attacked," Carney said.

Trump hit back at Canada early Sunday, saying, "Canada wants the benefits of being a State, without being one!!!" "They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!" Trump added in a post on Truth Social.