Carney Calls US Trade Talks 'Nasty' After Trump Jab

Canadian Prime Minister Mark Carney said Thursday that trade negotiations with the United States had turned "nasty" after President Donald Trump derided America's neighbor and its leadership while threatening to expand tariffs.

Carney said Canada remained engaged in the talks despite Trump's comments, describing the negotiations as a fight to protect Canadian workers and businesses.

"This is a tough negotiation," Carney said in French, according to a translation. "You can say 'nasty.' But this is a question of Canadian jobs. It's a question of the future of Canadian businesses."

Trump criticized Canada during a speech Wednesday in Las Vegas. "Canada's nasty. They are. They're nasty," he said. "I love the people, but they're nasty. Nasty leadership."

Carney said "we are in the middle of a tariff war with the Americans" but laughed when asked about Trump's description. He said Canadian negotiators were in Washington this week and that he expected further conversations with Trump after speaking with him last week.

The United States already has tariffs on Canadian steel, aluminum and automobiles. Trump has threatened to impose 50% tariffs on more Canadian goods beginning Aug. 19.

Tariffs are taxes on imports, which companies can pass along to consumers through higher prices. The president maintains that tariff costs will cause manufacturing to relocate to the United States, though there is little evidence of that in the economic data.

Trump's tariff threats and his repeated suggestions that Canada should become the 51st state have angered many Canadians, prompting some to cancel trips to the United States.

U.S. Trade Representative Jamieson Greer has argued that Canada and China are the only two countries to retaliate against Trump's tariffs, citing restrictions on U.S. alcohol sales in some Canadian provinces. Canadian officials say their countermeasures responded to existing U.S. tariffs.

Tensions have escalated for months. At the World Economic Forum in Davos, Switzerland, in January, Carney criticized major powers for using economic coercion against smaller countries, prompting Trump to respond: "Canada lives because of the United States. Remember that, Mark, the next time you make your statements."

Canada is one of the largest U.S. trading partners, and the dispute threatens higher prices as Americans voice frustration with the cost of living ahead of the Nov. 3 midterm elections. Carney said existing U.S. tariffs on aluminum have contributed to a 58% increase in aluminum prices in the United States. "That's not a good situation for American companies," he said.