US Warns Canada: Trade Clash With Washington Would Be Catastrophic

US Transportation Secretary Sean Duffy said on Monday that Canada cannot afford a trade war with the United States, as such a confrontation would have “catastrophic” consequences for the country. He also said he believes Prime Minister Mark Carney will soon return to the negotiating table.

The Canadian government has warned that from September 8 it will impose retaliatory measures on US steel and dairy products. The decision came after Carney rejected a “bad trade deal” proposed by Washington.

Speaking to Fox News, Duffy stressed that the two countries are important trading partners, but said Canada benefits more from its trade relationship with the US than Washington does from trade with Canada.

“To think that Canada can go to war with Donald Trump and come out victorious against the United States is foolish,” he said.

The US transportation secretary added that he expects Mark Carney to return to negotiations quickly, as a trade conflict would have catastrophic consequences for Canada.

The new Canadian tariffs will affect, among other sectors, the US steel and dairy industries. They are Ottawa’s response to additional US tariffs of 50%, which took effect yesterday and affect 5.5% of Canadian exports to the United States.

After several weeks of negotiations, the Canadian prime minister announced on Friday evening that the talks would end, shortly before the White House’s tariff ultimatum expired.

“When you are attacked, you are at war. We were attacked,” Carney said, arguing that the United States “asked for too much and offered too little.”