Markets 
WASHINGTON — The gloves are coming off.
Canadian Prime Minister Mark Carney likened his country’s tariff tiff with the US to a full-blown “war” on trade — with President Trump hitting back Sunday, accusing the northern neighbor of trying to secure “the benefits of being a State, without being one!!!”
“We were attacked. You’re at war when you get attacked. We got attacked,” Carney told reporters on Saturday. “That’s fine. We’ve got the reserves. We’ve got the resilience. We’ve got the plan. We’ve got the focus. We will respond.”
Carney further panned the Trump administration for trying to pressure Canada into “a bad deal.”
On Saturday, the Trump administration imposed a steep 50% tariff on an array of Canadian goods — such as beer, cheese, and electronics — reigniting trade tensions between the two North American countries.
Those tariffs would cover an estimated $28 billion worth of imports, and come on top of existing tariffs on aluminum, lumber, vehicles, and steel.
Trump, who is no stranger to tariff feuds with Canada and has repeatedly mused about it becoming a 51st state, ripped Ottawa for its longstanding trade practices with the US.
“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 declared on Truth Social early Sunday.
Carney, who vowed to retaliate, blamed the collapse of trade talks with the US on last-minute demands from Washington and alleged that Trump was attempting to rip Ottawa’s sovereignty away.
“It’s a power play. And it becomes a question of sovereignty,” Carney said. “We’re a proud independent country. We’ve got the right values. We’ll make our decisions about who we want to trade with and how, and including on how we work with the United States and other partners.”
Canada’s prime minister also alleged that Trump was demanding America’s northern neighbor “change its French language, Quebec culture and Canadian identity as a condition for reversing tariffs.”
“This is no longer about a trade deal — it is about a takeover of Canada’s sovereignty and identity,” he added.
At issue was whether language and cultural barriers in Quebec undermined US trade there.
The Canadian PM, who previously served as a central banker, declared that retaliatory tariffs on the US will go into effect on Sept. 8. He said Canada will match the US “dollar for dollar.”
US Trade Representative Jamieson Greer vowed that Washington will respond to any trade retaliation from Canada.
“For decades, Canada has enjoyed the most favorable access to the U.S. market of any country. And from the beginning of President Trump’s trade program, Canada has continued to enjoy the best treatment in the world,” Greer said in a Friday statement.
The trade war with Canada could roil Senate races in Michigan and Maine, states that have a lot of trade with America’s northern neighbor.
Trump is using Section 338 of the Tariff Act of 1930 to impose those duties on Canada. That authority lets the president slap tariffs of up to 50% on imports from countries that discriminate against American commerce.
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