United States Treasury Secretary Scott Bessent dismissed any notion of a trade war with Canada, humorously downplaying the idea by joking about Canada deploying submarines from an Edmonton mall against the U.S. Bessent also pointed fingers at Prime Minister Mark Carney, attributing the ongoing tension between the two nations to Carney’s desire to boost his poll numbers through perpetuating the conflict.
During an interview with CNBC, Bessent emphasized that the U.S. is not engaged in a tit-for-tat scenario with Canada, highlighting the vast difference in size between the two countries. He quipped about the impracticality of Canada using submarines from the Edmonton mall to threaten the U.S., emphasizing the disproportionate nature of any potential conflict.
Today, the notion of Edmonton’s submarines posing a threat is purely hypothetical. The recreational submarines at West Edmonton Mall, once a tourist attraction, were dismantled for scrap in 2012 after the ride closed in 2005. Despite this reality, the verbal sparring continues between the Trump administration and Canada, reignited by the collapse of a recent trade agreement.
Following the breakdown of trade discussions, Carney withdrew the Canadian negotiating team due to last-minute changes proposed by the U.S. that Canada deemed unfair and economically unsound. Carney underscored that the proposed changes would have restricted Canada’s trade flexibility and undermined key aspects of Canadian policy, including support for French-language media and bilingual product labeling.
Subsequently, the U.S. imposed 50% tariffs on approximately $28 billion worth of Canadian exports, prompting Canada to announce retaliatory tariffs beginning on September 8. Amid the escalating tensions, President Trump has resorted to social media insults towards Canada, including a symbolic act of renaming Lake Ontario as “Lake America.”
While political figures like Ontario Premier Doug Ford and Manitoba Premier Wab Kinew have vocally opposed Trump’s actions, Carney has refrained from engaging in taunts. However, Carney acknowledged that Canada is now entangled in a trade war with the U.S., emphasizing that Canada was attacked economically by the sudden shifts in trade negotiations.
Bessent criticized Carney for turning the situation into a political spectacle, accusing him of prioritizing personal and party interests over the well-being of Canadians. Finance Minister François-Philippe Champagne is set to engage with Bessent and other G20 counterparts in North Carolina to emphasize Canada’s reliability as a trade partner amidst global uncertainties.
In parallel, Alberta Premier Danielle Smith highlighted the damaging impact of tariffs on both countries, emphasizing the detrimental effects on small businesses and the urgency for a return to negotiation tables despite strained relations. Smith stressed the importance of averting further economic harm through constructive dialogue and mutual understanding between Canada and the U.S.