00:02After Ottawa suspended trade negotiations with Washington,
00:07U.S. President Donald Trump has fired back with a familiar threat.
00:11The 51st state jab is back.
00:14Trump accused Canada of wanting the benefits of being a U.S. state
00:18without actually becoming one.
00:20Canada wants the benefits of being a state without being one.
00:25They have also charged our great farmers for many years massive amounts of tariffs. No more.
00:33And he also targeted Canadian tariffs on American farmers.
00:37This is Trump's first direct reaction since Canadian Prime Minister Mark Carney
00:43ordered his trade negotiation team to leave the United States.
00:48So why did the talks collapse?
00:51Canada says Washington made a series of last-minute demands that Ottawa simply could not accept.
00:58We cannot accept what they've offered and we will not give what they've asked.
01:05Medium and heavy-duty trucks, which is a big change, obviously.
01:09And with respect to Ford's new plan, for example, in Oakville, which is F-350s, F-450s, F-550s, they
01:16would have been excluded.
01:17Carney said the new U.S. terms would have reduced tariff relief for Canadian-made vehicles,
01:23restricted Canada's ability to negotiate trade deals with other countries,
01:28and weakened protections for Canadian language and culture.
01:31Carney's message was blunt.
01:33They asked too much and they offered too little.
01:37But Washington has a very different version of events.
01:40U.S. Trade Representative Jamison Greer says the Trump administration had already offered to reduce tariffs on Canadian steel, automobiles
01:50and lumber,
01:51but Canada rejected the proposal.
01:54Greer accused Ottawa of retaliating against the U.S. for a year and said Washington had finally decided to take
02:02countermeasures.
02:02Now, the economic pressure is escalating.
02:07The United States is imposing 50% tariffs on $20 billion worth of Canadian goods.
02:14Canada says it will respond on September 8th, dollar for dollar.
02:19And the retaliation is expected to hit major American sectors, including steel and dairy.
02:25There is also a much bigger issue at stake.
02:29The United States, Canada and Mexico are tied together through the North American Trade Agreement,
02:35and this latest breakdown could complicate the future review of that agreement.
02:41Carney has already called the collapse certainly not good news,
02:45and said Canada now has a new perspective on Washington's expectations for the wider economic relationship.
02:52The stakes are enormous.
02:55The two countries traded around $880 billion in goods and services last year,
03:01and nearly 72% of Canada's goods exports went to the United States.
03:07So this is not just another diplomatic disagreement.
03:11It could have a direct impact on businesses, workers and consumers on both sides of the border.
03:17For now, Canada says it is standing its ground.
03:21Trump says Washington has had enough.
03:24And with tariffs rising and negotiations suspended, the question is no longer just about a trade deal.
03:31It is about the future of the U.S.-Canada economic relationship.
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