United States Treasury Secretary Scott Bessent dismissed any notion of a trade war with Canada, humorously downplaying the threat by joking about Canada deploying submarines from a mall in Edmonton. Bessent also implied that Prime Minister Mark Carney’s pursuit of the ongoing dispute benefits his political standing.
During an interview with CNBC, Bessent emphasized the disproportionality in size between the two countries, indicating that engaging in a trade war with Canada would not be a viable scenario. He specifically mentioned the implausibility of Canada using submarines from the defunct Edmonton mall against the U.S.
Contrary to the lighthearted exchange, tensions escalated as the trade negotiations collapsed, prompting retaliatory tariffs from both nations. Carney cited unjust demands presented by the U.S. team as the reason behind Canada’s withdrawal from the talks, pointing out the detrimental effects such conditions would have on various sectors, including the auto industry and media subsidies.
Following the breakdown of discussions, President Donald Trump resorted to social media provocations towards Canada, triggering responses from Canadian officials such as Ontario Premier Doug Ford and Manitoba Premier Wab Kinew. Despite the escalating rhetoric, Carney acknowledged the existence of a trade war with the U.S., emphasizing that Canada had been “attacked” economically.
Bessent criticized Carney’s handling of the situation, accusing him of fueling a political feud for personal gain rather than prioritizing the interests of the Canadian populace. Meanwhile, Alberta Premier Danielle Smith highlighted the adverse impact of the tariff dispute on businesses and emphasized the necessity for diplomatic negotiations to mitigate the economic fallout on both sides of the border.