Trump hints Canada wants "benefits" of state as trade talks collapse

US President Donald Trump has said Canada wants the benefits of being a US state without becoming one, after trade talks collapsed late Friday. The breakdown triggered new 50% US tariffs on a range of Canadian goods and the US is prepared to match tariffs dollar‑for‑dollar from September 8.

Home‑grown Canadian dairy, aluminium, steel and other products will see steep new tariffs, covering about 5% of Canada’s total trade value. Prime Minister Mark Carney denounced the tariffs as a miscalculation designed to hurt and divide the relationship.

Both sides have accused each other of last‑minute changes that broke the negotiations. Carney warned that the collapse threatens the 16‑year USMCA pact that underpins $1.6 trillion in trilateral trade with the US and Mexico.

Trade representative Jamieson Greer said the US has no plan to resume talks, but was prepared to cut some tariffs. Carney rejected the claim, saying the US demanded limits on Canada’s ability to strike other deals.

Canadian opposition and provincial leaders rebuked Trump, calling the tariffs unjustified and concerned about job losses. Premier Doug Ford also warned that the US demands would essentially reduce Canada to a 51st state.

The trade war leaves the two countries’ relationships uncertain, with both sides calling for a fresh negotiation round before the tariffs take effect.