Saturday, 8 August 2026, 9:01
Canadian Prime Minister Mark Carney responded with a mix of defiance and calm after President Donald Trump said Canada is "nasty." Carney said the trade negotiation is tough, but it is really about Canadian jobs and the future of Canadian businesses.
"This is a tough negotiation. You can say 'nasty.' But this is a question of Canadian jobs. It's a question of the future of Canadian businesses," Carney said in French.
Trump made his comments Wednesday in Las Vegas. "Canada's nasty. They are. They're nasty," Trump said. "I love the people, but they're nasty."
The United States has tariffs on Canadian steel, aluminum and automobiles. Trump has threatened to impose 50% tariffs on additional Canadian goods starting in August. Those taxes on imports often get passed to consumers, pushing prices higher at a time when Americans are already frustrated with the cost of living.
Carney pointed to one concrete impact: existing US tariffs on aluminum have contributed to a 58% increase in aluminum prices in the United States. "That's not a good situation for American companies," he said.
US Trade Representative Jamieson Greer has argued that Canada and China are the only countries that have retaliated against Trump's tariffs. He cited restrictions on US alcohol sales in some Canadian provinces. Canadian officials say their countermeasures were a response to existing US tariffs.
The fight is centered on Washington and Ottawa, but California has skin in the game. Higher aluminum prices can affect construction, manufacturing and consumer goods. Canadian retaliation can also hit US exports, and any further tariffs could push prices up at stores across California.
There is also a travel effect. Trump's repeated suggestion that Canada become the 51st US state has angered many Canadians, and some have canceled trips to the United States. California's tourism industry, which relies heavily on Canadian visitors, could feel that pullback.
The harsh exchange is the latest chapter in a transatlantic trade battle. At the World Economic Forum in Davos in January, Carney criticized major powers for using economic coercion against smaller countries. Trump responded: "Canada lives because of the United States. Remember that, Mark, the next time you make your statements."
Since then, tariffs, threats and statehood comments have kept the relationship on edge. Canada says it wants fair treatment, while Trump argues tariffs will force manufacturing to return to the US, despite little evidence in economic data.
Canadian negotiators were in Washington this week. Carney said he expects to talk with Trump again after their call last week. With new tariffs possibly coming in August, the stakes for workers, businesses and consumers on both sides of the border are only getting higher.
