US President Donald Trump on Sunday criticised Canada after trade negotiations between the two countries collapsed, accusing Ottawa of seeking the benefits of being part of the United States without becoming a state. Trump made the remarks on Truth Social, reiterating his long-standing suggestion that Canada could become the 51st US state. The comments came amid escalating trade tensions between the two neighbours.

Trump also accused Canada of imposing high tariffs on American farmers for years and warned that the situation would no longer continue. His remarks came shortly after Canadian Prime Minister Mark Carney announced that Ottawa would respond to new US tariffs by imposing matching duties on selected American goods. The dispute has intensified following the breakdown of negotiations aimed at reaching a broader trade agreement.

Carney said Canada would match Washington's new tariffs dollar for dollar to protect Canadian workers, farmers, families and businesses. He described the situation as an attack on Canada when asked whether the two countries were effectively engaged in a trade war. Carney also blamed last-minute demands from the Trump administration for disrupting progress in the negotiations, saying the proposed terms were unfair and economically damaging to Canada.

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The talks reportedly broke down partly over Canada's demand for additional tariff relief on medium- and heavy-duty vehicles, according to Bloomberg News. The two sides had reportedly developed the outline of a potential agreement that would have reduced US sectoral tariffs on Canadian automobiles, steel, aluminium and lumber. However, they remained divided over whether similar relief should apply to larger vehicles, including pickup trucks and commercial vehicles.

Under the proposed arrangement, the standard US tariff on Canadian automobiles would have fallen to 15% from 25%, but Canada sought to extend the reduction to medium- and heavy-duty vehicles. Washington did not accept the additional request during a late Friday discussion, according to the report. The disagreement ultimately contributed to the collapse of the trade negotiations between the two countries.

The trade dispute escalated further after the United States imposed 50% tariffs on about $20 billion worth of Canadian goods early Saturday. Carney announced that Canada's retaliatory measures would begin on September 8 and cover sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. With both governments taking tougher positions, the latest developments have raised fresh concerns about the future of trade relations between the US and Canada.

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