Canadian PM Carney Says U.S. Taunting 'Not Constructive' Toward Trade Resolution — Update

By Paul Vieira

OTTAWA--The Trump adminsitration's taunting of Canada is not constructive and should cease if the U.S. is serious about clinching a beneficial trade deal with its northern neighbor, Canadian Prime Minister Mark Carney told reporters on Tuesday.

"When the Americans stop doing memes, stop throwing shade, stop trying to be tough, and start being serious about having those discussions, we can have those discussions. But look, it's not constructive. That's their democracy," Carney said in the capital, the morning after his governing Liberal Party won three special elections to fill vacancies in the legislature.

Carney's remarks were a rebuttal to Treasury Secretary Scott Bessent blaming the Canadian leader for the collapse of trade talks last month. Bessent also brushed off concerns about igniting a trade war with the U.S.'s second-largest trading partner, after Mexico, by noting that the American economy dwarfs Canada's.

Bessent also joked that Canada might send mini-submarines previously used on an amusement park ride to attack the U.S. The U.S. Defense Secretary, Pete Hegseth, on the X platform published a post showing two female Canadian cadets that was interpreted as mocking the cadets' weight and gender.

"It's beneath their office," said Carney, of the Trump administration's mocking of the country's armed forces.

The Trump administration has ramped up its attacks following the breakdown of talks that could have sharply reduced tariffs from hefty levels on key Canadian goods like steel, aluminum and motor vehicles. The U.S. and Canadian sides blame each other for the collapse, arguing their counterpart introduced last-minute demands that made an agreement untenable. Carney said Tuesday the two sides were moving toward a mutually beneficial deal, but it was never finalized and interests "diverged at the end. At some point, maybe it'll converge again."

The U.S. moved immediately to impose 50% tariffs on about $20 billion of Canadian imports. Canada intends to retaliate with a tariff package of its own, with duties ranging from 15% to 50% on about $20 billion of U.S. goods. President Trump ramped up the stakes by threatening a 50% tariff on all Canadian-assembled motor vehicles and automotive parts -- a move that threatens to upend the closely integrated North American auto sector.

In a move also angering Canadians, Trump ordered that one of the Great Lakes, Lake Ontario, be renamed Lake America, after the premier of Ontario called the President a "dictator," "loser," and "king of bankruptcies."

Polling indicates the Carney government enjoys solid public support for his U.S. trade strategy, and the prime minister said that helped his Liberal Party collect victories in three special elections on Monday night--including picking up a district in Quebec previously held by the Conservative Party.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

September 01, 2026 11:29 ET (15:29 GMT)