Canada tests the limits of Trump’s power

**Sumi Somaskanda** (0:00)
The relationship between the US and Canada is nearing breaking point. The two countries are locked in a trade war, and for now, neither appears to be backing down. It is a huge test for the Canadian Prime Minister, Mark Carney. Instead of striking a deal with the president, like other US allies have, he's instead chosen to walk away from Donald Trump's demands.
But there's so much on the line for both men. It's also a test of American power and Donald Trump's ability to get what he wants on the global stage. Welcome to Americast.

**SPEAKER_3** (0:33)
Americast from BBC News.

**SPEAKER_4** (0:36)
You hear that sound?

**John Dammus** (0:37)
Oh, I think when I hear that sound, it reminds me of money.

**SPEAKER_4** (0:40)
We didn't start this war, but under President Trump, we are finishing it. This is a big cover-up, and this administration is engaged in it.

**John Dammus** (0:48)
This guy has Trump derangement syndrome.

**Anthony Zurcher** (0:50)
I have four words for you. Hello, it's Anthony here in Washington, DC.

**Sumi Somaskanda** (1:03)
And it's Sumi sitting alongside Anthony in our Washington, DC. Bureau. Anthony, it's Wednesday around 10 a.m. here in Washington, and boy, this trade war between the US and Canada does not seem to be, let's say, cooling down at all at the moment.

**Anthony Zurcher** (1:18)
Yeah, it has spiked. It's been simmering for a while, I think, and we had bits and pieces. There was a lot of feuding between Canada and the US last year, even before Trump came back to office, where he was talking about the 51st state and picking fights with Justin Trudeau, who is a former prime minister. But here we are now, a new prime minister, and this is as hot as I think it's ever gotten.

**Sumi Somaskanda** (1:41)
Yeah, so if we just go through it, Canada has chosen to retaliate. It has announced tariffs of up to 50% on hundreds of American goods. And starting in September, Canada will double tariffs on American steel and aluminum. That's really critical from 25% to 50%.
Looking at some of the other items here, they're going to impose tariffs from 15% to 50% on hundreds of other products. So food, plastics, appliances, agriculture equipment, motorcycles, think about that, that's quintessentially American, electronics as well. This all comes in response to those trade talks breaking down and President Trump announcing steep tariffs, 50% tariffs on Canadian goods, including whiskey, dairy products, toys, clothing, hockey sticks, of course, and threats to increase. He's now threatened to increase Canadian car tariffs and trucks up to 50% starting January of next year. So all of those numbers tell us this is just ratcheting up, escalating further and further.

**Anthony Zurcher** (2:43)
Right. And those Canadian tariffs that you mentioned, they kick in in about two weeks. So there's a little bit of wiggle room here and those big auto tariffs don't kick in, as you said, till the first of the year.
It gives them a little space to try to negotiate something, but they've been negotiating now for quite some time. If you remember in Trump's first term, they renegotiated the North America Free Trade Agreement, changed it to the US Mexico Canada Agreement, USMCA.

**Sumi Somaskanda** (3:08)
Although the Canadians call it CUSMCA, I believe.

**Anthony Zurcher** (3:12)
So many letters.
And that was Trump negotiating it. And then coming back in again, he renegotiated that renegotiation, trying to get a better deal, which is one of the reasons why I think there's some hard feelings on the Canadian side. They feel like they keep negotiating deals with the US and Trump keeps changing the terms. And when Mark Carney announced that he was pulling his negotiators back on Saturday morning, that was one of the things he said. He said that it seems like trade agreements with the United States are written in pencil, not pen.

**Sumi Somaskanda** (3:41)
And yes, there is a bit of time to negotiate, but if you listen to the words that are being expressed on both sides, they certainly don't sound like they're willing to come back to the table. We have a clip of Ontario Premier Doug Ford, who is quite boisterous and obviously really entertaining to listen to. He hit out at President Trump during a speech on Monday.

**Doug Ford** (4:00)
He says he doesn't need Canada. I'd love to see, he wants to take our auto sector. I'd love to see him run cars without any oil.
I'd love to see him try to grow vegetables and fruit and everything without the potash. You know, your own people, President Trump, don't even like you. And they're going to speak loud and clear when it comes to the midterms. And if I was allowed to, I'd be down there door knocking.