Trump says Canada wants US state benefits as trade war escalates

Donald Trump, the US President, has accused Canada of seeking the benefits of being part of the United States without becoming a state, after trade talks between the two countries collapsed and Washington imposed fresh 50 percent tariffs on a range of Canadian goods.

Trump said Canada had “asked too much” during negotiations and warned that Ottawa would struggle to win a trade war with its biggest trading partner.

Mark Carney, Canadian Prime Minister, described the tariffs as a “miscalculation” intended to hurt and divide Canada. He said Ottawa would respond dollar for dollar from September 8, including tariffs on steel, dairy products, appliances and electronics.

The new US levies affect about $20 billion of Canadian imports, including wine, clothing, cement, dairy products and hockey equipment. They add to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.

The breakdown threatens one of the world’s most integrated trading relationships, with both governments offering little indication of an immediate path back to negotiations.