United States Treasury Secretary Scott Bessent dismissed any notion of a war between the U.S. and Canada, humorously downplaying the threat by joking about submarines from the Edmonton mall. He also pointed fingers at Prime Minister Mark Carney for fueling the current tensions between the two nations for political gain.
During an interview with CNBC on Monday, Bessent emphasized that the U.S. is not engaged in a trade war with Canada, citing the significant disparity in size between the two countries. He quipped, “Well, I don’t think you can be in a tit for tat with someone that’s 13 times larger than you are.”
Referring to the hypothetical use of submarines from Edmonton, Bessent’s comments were met with criticism from Canadian officials amidst the escalating dispute. The breakdown of recent trade negotiations further intensified the verbal sparring between the Trump administration and Canada, with both sides asserting their positions.
In response to the failed talks, Carney withdrew Canada’s negotiating team due to what he deemed unfair demands introduced by the U.S. These demands would have hindered Canada’s international trade agreements and undermined certain domestic policies, including subsidies and language requirements.
Following the breakdown, the U.S. imposed substantial tariffs on Canadian exports, prompting a retaliatory response from Canada. Despite the mounting tensions and social media jabs from President Trump, Carney acknowledged that Canada finds itself in a trade war with its southern neighbor.
Bessent, on the other hand, expressed disappointment in Carney’s handling of the situation, accusing him of turning it into a political spectacle rather than acting in the best interests of the Canadian people. As diplomatic efforts continue, Finance Minister François-Philippe Champagne is set to engage with G20 counterparts to reinforce Canada’s commitment as a reliable trading partner amid global uncertainties.
Amidst the escalating trade tensions, Alberta Premier Danielle Smith cautioned against the detrimental effects of tariffs on both countries, emphasizing the need for a return to negotiations to mitigate the economic impact on small businesses and workers. Smith stressed the importance of fostering stronger economic ties between Canada and the U.S. for mutual benefit.
