Treasury Secretary Scott Bessent used blunt language Monday to downplay Canada’s tariff threats against the United States, arguing that Prime Minister Mark Carney lacks meaningful leverage over the much larger American economy.
Bessent made the comments during an interview with CNBC’s Sara Eisen in Asheville, North Carolina, where he is hosting a two-day gathering of G20 finance ministers and central bank governors.
Asked whether markets should read the rising rhetoric between Washington and Ottawa as the start of a tit-for-tat trade war, Bessent pointed to the size gap between the two economies, noting the U.S. economy is roughly 13 times larger than Canada’s.
“What else are they going to say?” Bessent asked, suggesting Ottawa’s tough talk outpaces its actual options.
He went further, accusing Carney of turning an economic dispute into a partisan spectacle rather than working toward a resolution.
“You know, look, I think this is very unfortunate that Prime Minister Carney has turned this into a political shouting match. I mean, we’re not at war with Canada.”
Bessent also delivered a sharper line mocking Canada’s military posture relative to the United States: “What are they going to take their two submarines from the Edmonton Mall and sic them on us?”
Bessent argued that Carney built his political comeback on opposition to President Donald Trump and the United States, claiming Carney had been trailing badly in the polls before adopting that stance and using cross-border tensions to his advantage.
“And it’s unfortunate that he’s not doing what’s best for the Canadian people. He’s doing what is best for the Liberal Party, what’s best for Mark Carney.”
Bessent predicted Canadians would eventually see through the strategy: “And in the long run, the Canadian people are going to see through that.”
He also said Canada had been offered highly favorable terms by the Trump administration before Carney walked away from the deal at the last minute.
“And, you know, I will say that they were offered the best trade deal of any, any country on the globe, and he chose to walk away from it at the last minute.”
The exchange underscores a broader posture from the Trump administration: it says it remains open to serious negotiation with Canada but is unwilling to treat political theater from Ottawa as a sign of genuine strategic leverage.
Add comment