Donald Trump claims Canada wants state perks, trade talks break down

US President Donald Trump said Canada wants the benefits of being a US state, sparking a trade war that could cost $20 bn in Canadian goods.

Negotiations collapsed on Friday, leading the US to impose a 50 % tariff on a range of Canadian products, from wine and dairy to steel and electronics. Trump accused American farmers of paying “massive amounts of tariffs” for years.

Canadian Prime Minister Mark Carney called the tariffs a miscalculation designed to hurt and divide the nations. He warned Canada would match the US tariffs dollar‑for‑dollar from 8 September, effectively starting a trade war.

Both sides had hopes of a deal earlier in the week, but talks fell apart when each accused the other of last‑minute changes. “They asked too much and they offered too little,” Carney said on Saturday.

Trump’s accusation echoes his repeated claims of turning Canada into the “51st state” of America, irritating Canadian leaders and residents alike. The breakdown of the trade talks upended a deeply integrated trading relationship with no clear path to resolution.

Canadian officials say the US tariff response covering about 5 % of Canadian imports—wine, dairy, cement, clothing and hockey equipment—will hurt jobs and businesses. Carney, meanwhile, pledged to defend Canadian interests and said the country would retaliate “reluctantly.”

National leaders across Canada rallied behind Carney, with Ontario and Quebec premiers labeling the US moves unfair and calling for renewed talks. Federal opposition and provincial heads stressed the urgency of preserving international trade relations and supporting North American Free Trade Agreement (USMCA) negotiations.