Canada’s Carney is standing his ground. Says:
Asked about US officials insulting Canada, says “It’s beneath their office”We can start having trade discussions with the US when Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious.US terms in trade talks meant Canadian industries either would become US subsidiaries or would be wound down.We never thought we had a full trade deal with US during the talks that Canada walked away from.
Of course Pres. Trump in response to the trade deal breaking down, renamed Lake Ontario to Lake America. Treasury Secretary Bessette has also been dismissive:
August 31 — Bessent dismissed Canada’s ability to retaliate: “I don’t think you can be in a tit-for-tat with someone who’s 13 times larger than you are.”
August 31 — Bessent mocked Canada’s military, joking about Canada deploying submarines from the Edmonton mall against the United States. When the interviewer said Canada maintained it was doing okay, he responded dismissively.
Some prior examples include
Trump calling Carney “Governor Carney,” January 24, 2026: The label reinforced Trump’s suggestion that Canada should become the 51st state, diminishing its status as an independent country.
Trump posting an altered map, January 2026: He shared an image depicting Canada, Greenland, Venezuela and Cuba as U.S. territory. This is a concrete reference for the complaint about memes and social-media provocations.
Trump at Davos, January 2026: “Canada lives because of the United States.”
Sticks and stones and all that, but you have to wonder if there are ever grown ups in the room?
The U.S. has several specific trade complaints against Canada behind the recent rhetoric:
Dairy market access: Washington argues that Canada’s production controls, import quotas and high tariffs restrict American dairy sales. Some tariffs approach 300%, but those apply to imports above designated quotas—not all U.S. dairy exports.
Restrictions on American alcohol: The U.S. objects to provinces removing American wine, beer and spirits from store shelves. It also criticizes longstanding provincial pricing and distribution rules that make selling American products more difficult
Tariffs and restrictions on U.S. vehicles: The administration complains that Canada’s 25% auto tariffs and company-specific import arrangements disadvantage American manufacturers relative to competitors from other countries. This was a central complaint in its August 25 statement.
“Buy Canadian” procurement policies: Washington says preferences for Canadian companies and Canadian-made steel, aluminum and wood shut U.S. suppliers out of government contracts.
Digital and media rules: U.S. officials object to requirements that major platforms compensate Canadian news publishers and that streaming companies help finance Canadian programming, arguing they disproportionately burden American businesses.
The goods trade deficit: Trump argues that Canada benefits disproportionately from access to American consumers. The White House cites an average annual U.S. goods deficit of roughly $50 billion over the past decade. A trade deficit itself, however, does not establish unfair trading practices.
The key context is that some complaints concern longstanding Canadian protections, while others concern Canadian retaliation against U.S. tariffs. Canada explicitly describes its latest counter-tariffs as a matching response to Washington’s actions. That distinction matters when assessing who imposed which barriers and why.It is now being reported that the Canadian Finance Minister Champagne will meet with Treas Secretary Bessent this afternoon.
If there is a problem, look to fix them in an equitable way like grown ups without threatening the sovereignty of a nation.
The USDCAD is trading higher today, after falling yesterday after failing to extend above its 100 day moving average at the start of trading yesterday, but finding support buyers early today against its 200 day moving average. The pricing the North American session has moved back above its 100 hour moving average at 1.3872 and looks back toward the 100 day moving average at 1.39161. The current price is trading at 1.3895.
This article was written by Greg Michalowski at investinglive.com.