U.S. Treasury Secretary Scott Bessent on Monday derided Canada's military capabilities in the escalating trade dispute between the two North American neighbors, questioning what action Ottawa might take in response to U.S. tariffs.
"What are they going to do — take their two submarines from the Edmonton Mall and sic them on us?" Bessent asked during an interview on CNBC's "Squawk on the Street." He suggested that Canadian Prime Minister Mark Carney was prioritizing his own political interests over those of the Canadian people.
"Very unfortunate that PM [Mark] Carney has turned this into a political shouting match. I mean, we’re not at war with Canada," Bessent stated, addressing the ongoing tariff impositions and retaliations.
The United States initiated the latest escalation on Aug. 22, imposing a 50% tariff on approximately $28 billion worth of Canadian goods, including beer, cheese, and electronics. These new duties were added to existing tariffs on aluminum, lumber, vehicles, and steel.
Canadian Prime Minister Mark Carney responded on Aug. 23, announcing that Ottawa would implement dollar-for-dollar retaliatory tariffs set to take effect on Sept. 8. Carney described the U.S. actions as an "attack" and vowed a strong response. "You’re at war when you get attacked. We got attacked," Carney told reporters.
In a separate development, the U.S. administration, under President Trump, issued an executive order renaming Lake Ontario, which borders Canada and New York, to Lake America. The administration also characterized Canada as "the worst to deal with on trade."
Prime Minister Carney rejected the renaming of the lake, asserting, "Things must be called by their name, and this lake is called Lake Ontario, today and forever."