US denies Canada 'trade war,' blames Carney for 'shouting match'

US Treasury Secretary Scott Bessent on Monday dismissed assertions of a "trade war" with Canada and accused Prime Minister Mark Carney of escalating tensions into a "political shouting match" during a period of heightened trade friction between the allies.

G20 Meeting Remarks

Speaking to CNBC on the sidelines of the G20 meeting in Asheville, North Carolina, Bessent confirmed he was meeting his Canadian counterpart Francois-Philippe Champagne during the sessions. Asked whether Washington and Ottawa were engaged in a "tit-for-tat trade war," Bessent rejected the characterization. "I think this is very unfortunate that Prime Minister Carney has turned this into a political shouting match," he said, adding: "We're not at war with Canada. How are we going to be at war with Canada?" Bessent mocked the suggestion of military confrontation, asking: "What are they going to do — take their two submarines from the Edmonton Mall and sic them on us?"

Political Accusations

Bessent accused Carney of building his political career on opposition to Washington, saying he "came to power on an anti-American, anti-Trump agenda." The Treasury Secretary charged that Carney was prioritizing partisan interests over national welfare, stating: "It's unfortunate that he's not doing what's best for the Canadian people. He's doing what is best for the Liberal Party, what's best for Mark Carney." Bessent predicted Canadians "are going to see through that," noting that Ottawa had rejected "the best trade deal of any country on the globe" and "chose to walk away from it at the last minute."

Escalating Tariff Measures

The remarks came as Washington imposed 50% tariffs on $20 billion worth of Canadian goods on August 22, with President Donald Trump directing a 50% tariff on all Canadian cars, trucks and steel to take effect January 1, 2027. Trump maintains the measures are necessary to address a trade deficit exceeding $60 billion and has repeatedly urged manufacturers to relocate operations to the US to secure "zero tariffs." Carney has denounced the levies as a "miscalculation" designed to "hurt and divide" Canada, announcing that Ottawa will impose reciprocal tariffs on $20 billion worth of US imports beginning September 8 and declaring the country was "at war" over trade.