Canada-US trade talks turn nasty after Trump's wider tariff threat

Toronto,UPDATED: Aug 7, 2026 03:18 IST

Canadian Prime Minister Mark Carney said on Thursday that trade talks with the United States had turned "nasty" after President Donald Trump criticised Canada and its leadership while threatening to widen tariffs on Canadian goods. Carney said Canada would stay engaged in the negotiations, calling them important for protecting Canadian workers and businesses.

Speaking in French, Carney said, "This is a tough negotiation. You can say nasty. But this is a question of Canadian jobs. It's a question of the future of Canadian businesses." He also said Canada was "in the middle of a tariff war with the Americans".

Trump made the remarks during a speech in Las Vegas on Wednesday. "Canada's nasty. They are. They're nasty," he said. "I love the people, but they're nasty. Nasty leadership." Carney laughed when asked about Trump's description, and said Canadian negotiators were in Washington this week. He said he expected more conversations with Trump after speaking with him last week.

The United States already has tariffs on Canadian steel, aluminium and automobiles, and Trump has threatened to impose 50 per cent tariffs on more Canadian goods from August 19. Tariffs are taxes on imports, and companies can pass those costs on to consumers through higher prices. Carney said existing US tariffs on aluminium had contributed to a 58 per cent rise in aluminium prices in the United States. "That's not a good situation for American companies," he said.

Trump's tariff threats and his repeated suggestions that Canada should become the 51st US state have angered many Canadians, leading many to cancel trips to the United States. US Trade Representative Jamieson Greer has said Canada and China are the only two countries to retaliate against Trump's tariffs, and pointed to restrictions on US alcohol sales in some Canadian provinces. Canadian officials have said their countermeasures were in response to existing US tariffs.

Canada is one of the United States' biggest trading partners, and the dispute risks pushing up prices further at a time when many Americans are already unhappy with the high cost of living ahead of the November 3 midterm elections. The latest exchange underlined the strain in the talks, even as both sides remain in contact and Canada says the negotiations are focused on jobs and business.

With PTI Inputs

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