United States Treasury Secretary Scott Bessent downplays any notion of a trade war with Canada, dismissing the idea by humorously referencing “submarines from the Edmonton mall.” He also suggests that the ongoing tensions between the two countries can be attributed to Prime Minister Mark Carney’s desire to boost his poll numbers through the political discord.
During an interview with CNBC on Monday, Bessent refuted the idea of a trade war with Canada, emphasizing the vast difference in size between the two nations. He quipped, “I mean we’re not at war with Canada. How are we going to be at war with Canada? What, are they going to take their two submarines from the Edmonton mall and sick them on us?”
Addressing the impracticality of such a scenario, it is noted that the submarines in question were part of a now-defunct tourist attraction at the West Edmonton Mall, having been dismantled years ago. Despite this, the verbal sparring between the Trump administration and Canada has intensified following the breakdown of a recent trade deal between the two nations.
The rift was exacerbated when Carney withdrew Canada’s negotiating team due to what he deemed as unfair and economically unsound last-minute demands from the U.S. These demands included restrictions that would hinder Canada’s trade agreements with other countries and affect 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 retaliatory tariffs set to take effect on September 8. Bessent criticized Carney for escalating the situation, accusing him of prioritizing political gain over the well-being of the Canadian people.
Amid the escalating tensions, Alberta Premier Danielle Smith emphasized the detrimental impact of a tariff war on both countries, stressing that no one stands to benefit from such conflicts. She highlighted the potential repercussions on small businesses and urged for a return to negotiation tables to resolve the trade dispute and alleviate the strain on both economies.