Tensions between the United States and Canada are escalating after Ottawa suspended trade negotiations with Washington, prompting President Donald Trump to revive his controversial 51st state remarks. Trump accused Canada of demanding the benefits of being a U.S. state without actually joining the United States, while Canadian Prime Minister Mark Carney said Washington had asked for too much and offered too little.
The collapse in talks comes as both countries prepare for a new round of tariffs, with the United States imposing 50 percent tariffs on $20 billion worth of Canadian goods and Canada promising dollar-for-dollar retaliation targeting major American industries, including steel and dairy. With nearly $880 billion in goods and services traded between the two countries last year, the escalating dispute could have major consequences for businesses, workers and consumers on both sides of the border.
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