Trump has managed to alienate Canada from the U.S., for no discernible reason. It’s like he just enjoys pissing people off.
The trade talks– over a policy that Trump initiated in his first term, mind you — broke down. The Canadians say this was over last-minute unreasonable demands from the U.S.. I say it all boils down to Trump thinking he owns the Western Hemisphere now.
What happened? The talks appeared to be going well, and then suddenly Canadian Prime Minister Mark Carney walked out of them, and Trump blew up and declared a (no doubt illegal) 50 percent tariff on Canada. Canada has since announced a retaliatory tariff on the U.S. And this is going to cost both countries a lot of money.
I’m reading conflicting stories in the news, and I suspect a lot of details have not been made public. Both sides are accusing the other side of making unreasonable last-minute demands. Let’s just say I am inclined to believe the Canadians on this one. Springing unreasonable last-minute demands during negotiations is a long-standing Trump trick. Among other things, PM Carney is saying that the U.S. wanted to restrict Canada’s ability to make separate trade deals with other countries.
Carney said Washington introduced language in the final hours of negotiations that would have restricted Canada’s ability to make trade deals with other countries. He said that demand was “unacceptable” and “a question of sovereignty.”
British Columbia Premier David Eby said accepting such a condition would have reduced Canada “to the economic equivalent of the 51st state” — a status Trump has mused about often.
Trump had a meltdown.
The president has repeatedly talked about making Canada the 51st U.S. state and dismissed the allies’ border as artificial. On Sunday, Trump returned to that theme, writing on Truth Social that “Canada wants the benefits of being a State, without being one!!!” and accusing Canada of charging U.S. farmers “massive amounts” of tariffs for years. “No more!!!” he wrote.
I checked on Trump’s claims about tariffs on U.S. agriculture. Canada has charged tariffs on U.S. dairy, poultry, and eggs to protect Canadian dairy and chicken farmers. On other agricultural products the high tariffs kicked in only if the imports went over a predetermined quota. Which sounds to me like discouraging the U.S. from dumping surplus unsold corn or soybeans or whatever on Canada.
Further, the Montreal Gazette is reporting that the U.S. “wanted concessions on Quebec’s rules for appliances and instruction manuals, as well as its law promoting French-language cultural content.” What the bleep?
It also sounds as if there may have been too many cooks in the kitchen on the U.S. side. The chief negotiator was U.S. Trade Representative Jamieson Greer. But U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick got involved also. And I’m reading between the lines a bit here, but it sounds as if these three may not have been on the same page. But as I’ve said, I don’t think we have the whole story yet.
Note also there is widespread reporting that Canadians are supporting Carney for standing up to Trump. The political fallout for Trump is yet to fall.
See also:
David Frum, How to Lose a Trade War at The Atlantic.
Josh Marshall, What Did Trump Do That Made Carney Walk Away? at TPM.
Update: Do read Thank You for Your Inattention to This Matter by David Graham at The Atlantic. It sounds as if the world is already moving on from Trump.