Canadian Prime Minister Mark Carney said U.S. trade negotiations had turned "nasty" after President Donald Trump attacked Canada’s leadership, with Washington’s threatened 50% tariffs on additional Canadian goods set to take effect Aug. 19.
Carney Pushes Back as Tariffs Loom
"This is a tough negotiation," Carney said on Thursday, according to the Associated Press. "You can say ‘nasty.’ But this is a question of Canadian jobs. It’s a question of the future of Canadian businesses." Trump had said in Las Vegas, "Canada’s nasty. They are. They’re nasty," adding, "Nasty leadership."
Carney also said, "We are in the middle of a tariff war with the Americans," as Ottawa seeks a comprehensive agreement. Trump in July imposed 50% duties on nearly $20 billion of Canadian imports under Section 338 of the Tariff Act of 1930, covering products including wine, dairy goods and cement.
Carney previously called the measures a "direct violation" of the U.S.-Mexico-Canada Agreement. The duties apply even to covered goods that qualify under USMCA, while energy, potash, certain Section 232 products, fish and critical minerals remain exempt. Ottawa has said it has a "full range" of responses if the tariffs take effect.
The United States already imposes tariffs on Canadian steel, aluminum and automobiles. Carney said those measures helped push U.S. aluminum prices 58% higher, arguing that the increase hurts American companies.
Negotiators Keep Talking Despite Sharper Rhetoric
Despite the rhetoric, officials continued negotiations in Washington. Trade Minister Dominic LeBlanc said he and Chief Trade Negotiator Michael Charette met U.S. Trade Representative Jamieson Greer on Thursday.
"Our focus has been and will continue to be on striking a comprehensive deal that addresses sectoral tariffs and benefits Canadian workers, farmers and businesses," LeBlanc wrote on X.
As our trade talks with the United States continue, Chief Trade Negotiator Charette and I had a constructive and detailed meeting with Ambassador Greer today in Washington, D.C.
— Dominic LeBlanc (@DLeBlancNB) August 6, 2026
Our focus has been and will continue to be on striking a comprehensive deal that addresses sectoral… pic.twitter.com/ZaWMFQvrHZ
USMCA Dispute Adds Pressure Before Deadline
The talks come after the Trump administration declined to renew USMCA in its current form during the pact’s scheduled six-year review. The agreement remains in force while Canada, Mexico and the United States negotiate changes.
Trump has also widened his criticism beyond trade, recently threatening tariffs over Canadian wildfire smoke crossing into the United States. Carney has resisted immediate retaliation while negotiations continue, saying premature countermeasures could prove counterproductive.
The Aug. 19 deadline leaves little time to narrow differences before another tariff escalation.
Read Also: Top Economist Steve Hanke Has a Blunt Response to Trump's Claim That Tariffs ‘Made Us Rich': 'WRONG'
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