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The U.S.-Canada trade war is deepening after talks collapsed without a deal on Friday. Canadian Prime Minister Mark Carney accused the Trump administration of issuing demands that would compromise Canada’s sovereignty and undermine key industries. On Saturday, the United States slapped 50% tariffs on around $20 billion worth of imports from Canada, and Carney announced retaliatory tariffs on $20 billion of U.S. products set to go into effect on September 8.

“Canadians are sick of this,” says Avi Lewis, leader of Canada’s progressive New Democratic Party. He says that while the Liberal government has correctly identified voters’ anger, its policies still favor international investors and the fossil fuel industry rather than truly “Trump-proofing” the economy.

We also speak with trade expert Lori Wallach, who says the U.S.-Canada trade war is pitting Trump’s vision of “oligarchic trade grift” against a dead neoliberal consensus represented by Carney. The two countries have balanced trade, and Wallach says the United States is being far more lenient with China despite Beijing’s much more serious threat to the U.S. and wider global economy through its “beggar-thy-neighbor” policies.

This is a rush transcript. Copy may not be in its final form.

ANJALI KAMAT: The U.S.-Canada trade war is deepening after talks collapsed without a deal on Friday. Canadian Prime Minister Mark Carney accused the Trump administration of issuing demands that would compromise Canada’s sovereignty and undermine key industries. On Saturday, Trump slapped 50% tariffs on around $20 billion worth of imports from Canada. Carney then announced retaliatory tariffs on $20 billion of U.S. products beginning September 8th. Carney spoke on Saturday.

PRIME MINISTER MARK CARNEY: We’ve been under no illusions. We recognized from the start that America has changed. Early last year, in this room, I observed that the decadeslong process of steadily increasing integration between our economies was over. Our government understood before many that America would transform all of its commercial relationships, that it would put a series of tariffs on its closest allies and use economic integration as a weapon. We recognized that sometimes its signature was written in pencil. … The gap between partnership and competitor, unfortunately, has remained too wide in recent days. So, last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they’ve offered, and we will not give what they’ve asked.

PRIME MINISTER MARK CARNEY: We’ve been under no illusions. We recognized from the start that America has changed. Early last year, in this room, I observed that the decadeslong process of steadily increasing integration between our economies was over. Our government understood before many that America would transform all of its commercial relationships, that it would put a series of tariffs on its closest allies and use economic integration as a weapon. We recognized that sometimes its signature was written in pencil. …

The gap between partnership and competitor, unfortunately, has remained too wide in recent days. So, last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they’ve offered, and we will not give what they’ve asked.

ANJALI KAMAT: Canadian Prime Minister Mark Carney took questions from reporters after his address.

REPORTER: Why does it feel like today Mark Carney is going to war, trade war, the tone? PRIME MINISTER MARK CARNEY: Because we were attacked. Like, you’re at war when you get attacked. We got attacked. The U.S. put 50%. We waited until the United States decided to actually implement these so-called 338 tariffs. That’s fine.

REPORTER: Why does it feel like today Mark Carney is going to war, trade war, the tone?

PRIME MINISTER MARK CARNEY: Because we were attacked. Like, you’re at war when you get attacked. We got attacked. The U.S. put 50%. We waited until the United States decided to actually implement these so-called 338 tariffs. That’s fine.

ANJALI KAMAT: President Trump responded online, writing, quote, “Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” end-quote.

U.S. Transportation Secretary Sean Duffy appeared Sunday on Fox News.

TRANSPORTATION SECRETARY SEAN DUFFY: We’re great trading partners, right? But — but — but Canada gets the benefit of trading with the U.S. more — way more than the U.S. gets the benefit of trading with Canada. It’s a country that doesn’t have a military. … We want fairness for the American worker, and some of our best friends are — are the worst offenders, that treat us the worst. And the fact that we provide their security for them and they take advantage of us, I think President Trump was the first one to go, “You know what? That’s not the kind of relationship that friends should have.” And so, the president’s calling them out. I think you’re going to see Mark Carney come to the table very, very quickly, because it’s going to be devastating for his country.

TRANSPORTATION SECRETARY SEAN DUFFY: We’re great trading partners, right? But — but — but Canada gets the benefit of trading with the U.S. more — way more than the U.S. gets the benefit of trading with Canada. It’s a country that doesn’t have a military. …

We want fairness for the American worker, and some of our best friends are — are the worst offenders, that treat us the worst. And the fact that we provide their security for them and they take advantage of us, I think President Trump was the first one to go, “You know what? That’s not the kind of relationship that friends should have.” And so, the president’s calling them out. I think you’re going to see Mark Carney come to the table very, very quickly,........

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