Washington Escalates Against Canada: Tariff War Will Be “Devastating”

The Trump administration escalated its rhetoric against Canada on Sunday, warning that a tariff war would have “devastating” consequences for the country and calling Ottawa’s belief that it could win a trade confrontation with Washington “stupid,” according to Agence France-Presse (AFP).

Negotiations between Washington and Ottawa collapsed on Friday night, triggering new U.S. tariffs of 50 percent on approximately $20 billion worth of Canadian goods, equivalent to 5.5 percent of Canada’s exports to the United States.

In response, Canada announced retaliatory tariffs targeting mainly the U.S. steel and dairy sectors, which are set to take effect on September 8.

U.S. Transportation Secretary Sean Duffy said Canada would emerge as the loser if it chose to wage a trade war against President Donald Trump.