Washington, August 26, 2026 (Yes Punjab News)
US President Donald Trump has escalated his trade confrontation with Canada, calling it the most “difficult and unreasonable” trading partner and asserting that the country could not survive economically without access to the US market.
In a statement released by the White House, Trump said Canada had benefited from preferential access to the American market for decades and warned that his administration would no longer allow what it described as unfair trade practices. The White House said Canada had chosen retaliation rather than negotiation after Washington offered tariff reductions on several major sectors.
“Canada is easily the most difficult and unreasonable. They feel entitled, but they are not a State, and will be entitled no longer!” Trump said.
The White House accused Canada of imposing discriminatory tariffs and restrictions on US products, including 25 per cent tariffs and company-specific quotas on American vehicles. It said US vehicle exports to Canada had declined 22 per cent over the past year.
It also cited restrictions on American wine, beer and spirits and claimed US alcohol exports to Canada had fallen 81 per cent in one year. On dairy products, Washington pointed to Canadian tariff-rate quotas and over-quota duties approaching 300 per cent.
The White House said the US had recorded an average annual goods trade deficit of about $50 billion with Canada over the past decade. It also argued that Canada sends roughly three-quarters of its goods exports to the US, while the American economy is about 13 times larger and has more than eight times Canada’s population.
Canada has rejected Washington’s position and announced dollar-for-dollar retaliatory tariffs on US goods. Ottawa said the US had offered terms that were not in Canada’s national interest and that negotiations were suspended rather than accepting an agreement it believed could harm Canadian workers, businesses and strategic industries.
Effective September 8, Canada will impose tariffs of 15, 25 and 50 per cent on selected US goods worth C$27.6 billion, covering sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
Canada has also announced a C$7.5-billion package of measures to support workers and businesses affected by the trade dispute, including assistance aimed at helping companies manage the impact of the tariffs and diversify their markets.
The escalating dispute threatens deeply integrated US-Canada supply chains in automobiles, energy, agriculture and manufacturing. Both countries remain major trading partners, making prolonged tariff restrictions potentially disruptive for businesses and consumers on both sides of the border.
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