00:05A major trade confrontation is once again threatening to tear at the decades-old relationship
00:12between the United States and Canada. At the U.S.-Canada border, frustration is growing,
00:18after Canadian Prime Minister Mark Carney walked away from trade negotiations with Washington
00:23and announced plans for retaliatory tariffs. For some Canadians, the message is becoming
00:29increasingly blunt. One Canadian, Stuart Edwards, described a situation by saying,
00:35we have a bully in Washington. I think we had a great relationship with the United States for a
00:41very long time, and in my lifetime we've always been friends, and now we're not friends anymore,
00:46and it's going to hurt everybody, and it's just sad. I find it very sad. We have a bully in
00:51Washington,
00:51and he's just hitting us all with the big stick all the time, and we're not going to put up
00:56with it.
00:56Canada isn't. We all fight back. It's not that we hate Americans. It's that
01:02we have to thank President Trump for amalgamating Canada because we loathe him.
01:10We have the power, and it starts in buying food. If it's from the States, don't buy it.
01:20The latest escalation follows the collapse of last-minute negotiations between the two countries,
01:26and now a fresh wave of U.S. tariffs on Canadian goods has taken effect. Prime Minister Mark Carney
01:33announced that Canada would impose reciprocal tariffs on American goods. He said the measures
01:38would be applied dollar for dollar. Carney accused Washington of making last-minute changes to its
01:44proposed terms that were unfair and economically damaging. He also questioned whether the United
01:50States could be relied upon to honor a future agreement. The decision represents a dramatic
01:56reversal from earlier optimism. Just days ago, President Donald Trump had paused the threatened
02:02tariffs and suggested that Washington and Ottawa were close to a major trade agreement. But that optimism
02:08has now collapsed. The dispute intensified after Trump threatened a 50% tariff on nearly 20 billion
02:17dollars worth of Canadian imports. The deadline arrived with no final agreement. Carney said significant
02:24progress had been made during negotiations, but he argued that the progress was not enough to meet
02:30Canadian objectives. Then he ordered Canadian negotiators to return to Ottawa. Washington immediately
02:36pushed back. Greer said the United States had offered Canada favorable treatment compared with other major
02:43exporters. But Washington claimed that new Canadian demands and reversals had disrupted the balance
02:49reached during negotiations. The collapse has put one of the world's most deeply integrated trading
02:55relationships under enormous pressure. Canada sends approximately 70% of its exports south of the border.
03:02That means any prolonged tariff war could quickly affect factories, workers, consumers and businesses
03:09on both sides. Ontario is facing major risks because of its huge manufacturing and automobile industries.
03:16Quebec and British Columbia are also expected to feel significant economic pressure. The latest U.S.
03:23tariffs affect roughly 5% of Canadian exports. They include products such as wine, dairy, cement, clothing and
03:31hockey equipment. And these duties come on top of existing American tariffs on Canadian steel,
03:37aluminum, automobiles and lumber. Negotiators had reportedly been discussing major tariff reductions.
03:44Under the proposed framework, U.S. tariffs on Canadian steel and aluminum could have fallen from 50% to 25%.
03:52American tariffs on Canadian automobiles could have been reduced from 25% to 15%.
03:58In return, Canada was being asked to make concessions. One major demand involved Canadian provinces
04:05restoring American alcohol products to store shelves. Washington has also pushed for changes to Canada's
04:12dairy quota system to provide greater access for U.S. producers. Washington has also demanded that Canada
04:19remove remaining retaliatory tariffs on American automobiles. Canada, meanwhile, wants Washington to reduce
04:26tariffs affecting some of its most important industries. The disagreement is now threatening to reshape the
04:32economic relationship between the two countries. British Columbia Premier David Eby issued his own
04:38warning after the latest escalation. He said Canada's politeness should never be mistaken for weakness.
04:44For decades, the United States and Canada built one of the world's most interconnected trading relationships.
04:50Goods, energy, automobiles, food, and industrial products move continuously across their shared border.
04:58But Trump's tariff strategy has disrupted that model. Now, with negotiations suspended and new tariffs
05:05in force, both governments are preparing for a prolonged confrontation.
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