The trade conflict between the United States and Canada is effectively escalating into a "trade war." After the U.S. imposed a 50-percent tariff on certain Canadian products, Canada launched a tit-for-tat response, declaring "dollar for dollar, rate for rate," and communication channels for negotiations between the two countries have practically broken down.
"This isn't just about Canada; the whole world is watching this," said Doug Ford, Premier of Ontario, Canada. He added, "I'm just saying what every leader in this country wanted to say to President Trump, but didn't have the nerve to say." When asked about the cause of the conflict, he criticized, "It's President Trump. That's the whole thing," pointing out that "he slapped outrageous tariffs on his closest friend, ally, and number-one customer."
Within Canada, the federal government, provincial governments, businesses, and citizens are rallying together under the banner of "Team Canada." Canadian Finance Minister François-Philippe Champagne emphasized, "We are united in a fight for Canada," stressing, "This is what Team Canada is all about."
Canada has imposed retaliatory tariffs on U.S. products and decided to maintain existing retaliatory tariffs on automobiles. It also unveiled a 7.5-billion-dollar support package for businesses hurt by U.S. tariffs, while encouraging citizens to buy Canadian-made goods.
At the core of the breakdown in bilateral negotiations are the conditions presented by the U.S. at the last minute. The Canadian side argued that the terms proposed by the U.S. were "economically unviable, unfair, and unacceptable." In particular, they strongly pushed back against a demand that Canada align its trade policy with that of the U.S. when establishing trade relations with other nations.
The U.S. has denied this. Jamieson Greer, the United States Trade Representative, countered, "It wasn't a matter of 'Canada must do this or else,' but rather of 'let's coordinate bilaterally.'" He also warned that if Canada pursues further retaliation, "We aren't going to sit there and take it, either."
Just ten days ago, the two sides seemed on the verge of reaching an agreement. On the 19th, President Trump stated, "We have reached an agreement with Canada," calling it "a very fair deal for both sides." However, negotiations collapsed three days later, and the U.S. slapped a 50-percent tariff on certain imported Canadian goods. Following this, the Trump administration additionally warned that it would raise tariffs on automobiles and steel to 50 percent starting next year.
Ontario is raising a particularly hardline voice because it is Canada's manufacturing hub, heavily concentrated with the automotive and steel industries. Mentioning even the possibility of cutting off power supplies to the U.S., Premier Ford argued, "Every province needs to speak with one voice." Directing his remarks at President Trump, he fired back, "Treat us fairly, or go deal with Russia," adding, "Or you can work with your closest friend and ally."
Concerns are emerging within the U.S. as well. Republican Senator Susan Collins stated, "I think imposing new tariffs on Canada is a mistake."
In contrast, the Trump administration remains confident. U.S. Secretary of Agriculture Brooke Rollins praised President Trump as "the ultimate negotiator," saying, "We've seen his decisions always lead to great outcomes, especially in the trade arena."
Premier Ford warned President Trump, "He's going to have to get this trade deal done before the midterm elections," adding, "Otherwise, he's going to be in for a rough ride in the midterms."
(Reported by JIN Sang-myeong | Video by Hong Jin-young | Produced by SBS Digital News)
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