Prime Minister Mark Carney said he still believes a mutually beneficial trade deal with the United States is possible, but discussions cannot resume while U.S. officials continue to make disparaging remarks about Canada. Speaking to reporters in Ottawa on Tuesday, Carney responded to President Donald Trump’s decision to rename Lake Ontario to Lake America and other comments from U.S. officials that denigrated Canada’s military and economy. He said there has always been a positive opportunity for a trade deal that respects Canadian sovereignty, but the U.S. side needs to stop making memes, stop throwing shade, and stop trying to appear tough before serious talks can begin.

Read also: US-Canada Trade Dispute Sparks Packaging Industry Concerns

Carney also addressed remarks from members of Trump’s cabinet insulting Canada’s armed forces, calling those comments beneath their office. On Monday night, U.S. Defense Secretary Pete Hegseth posted a message mocking two women in a Canadian youth cadet program. Earlier that day, Treasury Secretary Scott Bessent dismissed the idea of a trade war with Canada, sarcastically asking whether Canada would take its two submarines from the Edmonton mall and use them against the U.S., a reference to a visitor attraction removed from the West Edmonton Mall in 2005.

Trade talks between the two countries broke down on August 21, and Trump imposed 50% tariffs on $20 billion worth of Canadian imports the following day. Canada has announced retaliatory duties on a roughly equal amount of U.S. goods, set to take effect September 8. Carney said the talks collapsed due to an accumulation of issues, including proposed tariff arrangements affecting key industries such as auto manufacturing. He noted that U.S. officials have taken the view that those sectors would become subsidiaries of U.S. industries or face terms that would gradually wind them down in Canada, terms Canada is not willing to accept.

Carney added that Trump’s attempt to crush Canada’s auto industry is misguided, arguing that the U.S. auto industry is made stronger by the Canadian and Mexican auto industries, and that cooperation is important at a time of significant change in the sector.

Source: IndexBox Market Intelligence Platform