Muhammad Aman Ullah | September 1, 2026
The True Post | US Treasury Secretary Scott Bessent has rejected the idea that the United States is engaged in a “war” with Canada, while making a sarcastic reference to submarines at West Edmonton Mall and accusing Canadian Prime Minister Mark Carney of using the ongoing trade dispute for political advantage.
Bessent made the comments during an interview with CNBC on Monday when he was asked whether the United States and Canada had entered a trade war.
Bessent Mocks Canada Over Possible Retaliation
Scott Bessent said it would be difficult to describe the situation as a war when the United States is dealing with a country that is roughly 13 times smaller in size.
In a sarcastic remark, he questioned how the United States could be considered to be at war with Canada and joked about whether Canada would send its two submarines from West Edmonton Mall against the United States.
His comments come as political and economic tensions between Washington and Ottawa continue to grow over tariffs and stalled trade negotiations.
The Story Behind West Edmonton Mall’s Submarines
Bessent’s reference was linked to the recreational submarines that once operated at West Edmonton Mall in Alberta.
The mall previously had four recreational submarines that took visitors around an indoor lake. The attraction was discontinued in 2005, and the submarines were later dismantled for scrap in 2012.
The reference was therefore clearly sarcastic and was used by the US Treasury secretary while discussing Canada’s ability to retaliate against the United States.
Trade Negotiations Break Down
Tensions between Canada and the United States intensified after negotiations aimed at reaching a trade agreement broke down.
Canadian Prime Minister Mark Carney said he had decided on August 21 to recall Canada’s negotiating team from the United States.
According to Carney, the American side introduced new conditions during the final stage of negotiations that Canada considered unfair and economically unacceptable.
Canada Raises Concerns Over US Demands
Carney said some of the American demands could have restricted Canada’s ability to negotiate trade agreements with other countries.
He also said the proposed conditions could have affected Canada’s subsidies for French-language media and its requirements for bilingual product labelling.
The Canadian prime minister further argued that an agreement proposed by the United States involving the automotive industry could have harmed Canada’s automobile sector over the long term.
US Imposes 50 Percent Tariff
One day after the trade negotiations ended, the United States imposed a 50 percent tariff on approximately $28 billion worth of Canadian exports.
In response, Carney announced that Canada would retaliate against the US tariffs on a dollar-for-dollar basis.
The Canadian government has announced that its retaliatory tariffs on American products will take effect on September 8.
Bessent Accuses Carney of Seeking Political Benefit
During his CNBC interview, Bessent also sharply criticized Canadian Prime Minister Mark Carney.
He accused Carney of turning the dispute between Canada and the United States into political “noise” and argued that the Canadian leader had benefited politically from an anti-US and anti-Trump message.
Bessent claimed that Carney was keeping the dispute alive because it was politically beneficial to him and the Liberal Party.
The US Treasury secretary also alleged that Carney was making decisions based on the interests of his political position and the Liberal Party rather than what was best for Canadians.
Carney Calls It a Trade War
Carney has taken a very different position on the dispute.
Following the collapse of negotiations, the Canadian prime minister said that when one country launches an economic attack against another, it can reasonably be described as a trade war.
Carney has described the American tariffs as an attack on Canada and said his government would have to respond to protect Canadian interests.
Trump’s Statements Add to Tensions
The dispute has also been accompanied by increasingly strong statements from US President Donald Trump.
Trump has repeatedly criticized Canada on social media and has made controversial comments about the relationship between the two countries.
His remarks have triggered strong reactions from Canadian political leaders, although Carney has generally avoided responding with similarly provocative language.
Canadian Finance Minister to Hold Key Meetings
Canadian Finance Minister François-Philippe Champagne is expected to meet with US Treasury Secretary Scott Bessent and representatives from other G20 countries over the next two days.
The meetings are scheduled to take place in Asheville, North Carolina.
Canada is expected to use the meetings to present itself as a reliable trading partner while discussing global economic uncertainty and opportunities for stronger trade cooperation with other countries.
Alberta Premier Warns of Economic Damage
Alberta Premier Danielle Smith has also warned about the economic consequences of the ongoing trade dispute between Canada and the United States.
Smith has argued that neither side truly wins a tariff war because increased trade barriers can hurt businesses and consumers in both countries.
She warned that small businesses could be among the hardest hit if tariffs remain in place, with rising costs potentially forcing companies to reduce their workforce.
The Alberta premier has called on negotiators from both countries to return to the negotiating table despite the current tensions.
Canada and US Remain Closely Connected
The trade dispute is particularly significant because Canada and the United States have deeply integrated economic and defence relationships.
Canadian officials have repeatedly emphasized the importance of maintaining strong economic ties with the United States while protecting Canada’s ability to pursue independent trade policies.
The latest exchange between Scott Bessent and Mark Carney highlights the growing political dimension of the dispute.
While Washington and Ottawa continue to disagree over tariffs and trade conditions, businesses on both sides of the border are watching closely for signs of renewed negotiations and a possible resolution to the escalating economic tensions.
