US President Donald Trump has stepped up his attack on Canada after trade talks between the two countries broke down in Washington.
The failed talks have pushed the long-time allies into a new trade fight. Both sides now blame the other for the sharp rise in tension.
Trump responded on social media after the talks ended. He said Canada wanted the benefits of being part of the United States without becoming a state.
He also accused Canada of charging high tariffs on US farmers for many years. Trump said those tariffs would no longer be accepted.
The comments came after the United States placed 50% tariffs on about $20 billion worth of Canadian goods. The new duties took effect on Saturday.
The tariffs cover a wide range of goods. They include products such as hockey sticks and medical items.
Trade experts warn that the new duties could hurt businesses and lead to some job losses. However, the wider effect may be political as the dispute puts more strain on US and Canadian ties.
Canadian Prime Minister Mark Carney has promised to respond with matching tariffs. His government plans to match the US duties dollar for dollar.
The new Canadian tariffs are expected to begin on September 8. They will affect products such as steel, dairy goods, appliances and electronics.
Carney said Canada could not accept the demands made by the US. He also said his country would not give in to the pressure.
The Canadian leader described the situation as a trade war after the US raised its tariffs. He said Canada had been attacked and needed to respond.
US Trade Representative Jamieson Greer gave a different view. He said the United States had been forced to act after Canada used its own trade measures for about a year.
Greer said the US wanted to protect American workers and supply chains. He argued that the new tariffs were a response to actions taken by Canada.
The new trade measures have raised concern among small businesses in Canada. Dan Kelly, president of the Canadian Federation of Independent Business, said about 40% of small Canadian exporters could be directly affected.
He also estimated that almost one-third of those businesses expect their revenue to fall by at least half because of the tariffs.
The dispute has also drawn criticism from US politicians in states that share a border with Canada.
New York Governor Kathy Hochul criticized the move and said the tariffs could raise costs for people in the United States.
Minnesota Senator Amy Klobuchar also warned about higher costs for businesses, farmers and families. Canada is Minnesota’s biggest trading partner.
The growing dispute could also put the future of the North American trade pact at risk.
The United States, Canada and Mexico are part of the USMCA, a major trade agreement covering around $2 trillion in goods and services each year.
Trump signed the agreement during his first term in office. However, the US president refused to renew it this summer after Canada and Mexico asked for a longer extension.
Carney said the collapse of the latest US and Canadian talks was not good news for the trade pact.
The dispute has already affected relations between the two countries beyond trade.
Tourism between the neighbors has also suffered. Fewer Canadians traveled to the United States in 2025, with New York among the areas reporting a major decline.
Public anger in Canada has also grown. A petition calling for the removal of US Ambassador Pete Hoekstra has collected hundreds of thousands of signatures.
The petition reflects wider frustration over Trump’s repeated comments about Canada and his past suggestion that the country could become the 51st US state.
Public opinion has shifted as tensions have increased. A recent Canadian poll found that only a small share of people viewed the United States as a trustworthy ally.
More than half of those surveyed also said they had canceled trips to the United States because of Trump’s comments.
The latest tariff fight now puts both governments under pressure. Businesses on both sides face higher costs, while leaders must deal with growing public anger.
For Canada and the United States, the dispute marks a major setback in a relationship built on close trade, travel and economic ties.
