U.S. Transportation Secretary Sean Duffy warned that Canada is making a “foolish” miscalculation by engaging in an escalating trade war with the United States, predicting “devastating” economic consequences for Ottawa.
Duffy’s comments follow the breakdown of bilateral negotiations late Friday, which prompted Washington to impose 50 percent tariffs on approximately $20 billion worth of Canadian goods—representing about 5.5 percent of Canada’s total exports to the United States. In response, Canadian Prime Minister Mark Carney announced dollar-for-dollar retaliatory tariffs targeting U.S. steel, dairy, and consumer products, scheduled to take effect on September 8.
The Transportation Secretary asserted that while both nations are major commercial partners, Canada gains far more economic benefit from cross-border trade than the U.S. does, leaving Ottawa far more vulnerable in a prolonged dispute. Calling the retaliatory stance a form of folly, Duffy argued that Ottawa cannot win an economic confrontation against the Trump administration and predicted that Prime Minister Carney will return to the negotiating table “very, very quickly” once the economic impact of the 50 percent tariffs takes hold.
The harsh rhetoric underscores deepening trade friction between the two long-standing partners following Canada’s decision to walk away from what Ottawa characterized as an unfavorable deal that threatened Canadian economic sovereignty.
