United States Treasury Secretary Scott Bessent emphasized that the U.S. is not engaged in a conflict with Canada and humorously dismissed the idea of Canada using submarines from the Edmonton mall as a threat. Bessent also attributed the current tension between the two nations to Prime Minister Mark Carney, suggesting that prolonging the dispute benefits Carney’s popularity.
During an interview with CNBC on Monday, Bessent responded to inquiries about a potential trade war with Canada by highlighting the significant size difference between the two countries, stating that engaging in a tit-for-tat scenario with a nation much larger than Canada would not be feasible.
Referring to the humorous notion of Edmonton’s submarines being mobilized against the U.S., Bessent noted the impracticality of such an action since the recreational submarines at West Edmonton Mall were decommissioned in 2005. Despite this, the verbal sparring between the Trump administration and Canada escalated after a trade agreement collapsed abruptly.
Following the breakdown of negotiations, Carney withdrew Canada’s negotiating team due to last-minute demands that were deemed unfair and detrimental to Canadian interests. These demands included restrictions on future trade deals and undermining subsidies for French-language media and bilingual product labeling.
In response, the U.S. imposed 50% tariffs on approximately $28 billion worth of Canadian exports, prompting Canada to announce reciprocal tariffs effective September 8. While tensions escalated with President Trump making disparaging remarks, Carney refrained from engaging in taunts but acknowledged that Canada was now embroiled in a trade war with the U.S.
Expressing disappointment in the situation, Finance Minister François-Philippe Champagne is scheduled to meet with Bessent and other G20 counterparts in Asheville, N.C., to reinforce Canada’s reputation as a dependable trading partner amid global uncertainties. Alberta Premier Danielle Smith also weighed in, stressing the adverse effects of ongoing tariffs on both countries and the necessity for negotiations to resume for the benefit of their economies and businesses.