Former US Vice President Mike Pence says ‘last thing we need right now…is a trade war with Canada’ as talks fail

Mike Pence, the former US Vice President who served under President Donald Trump from 2017 to 2021, warned on Sunday (local time) that escalating US-Canada trade poses new risks to Washington's economy. Speaking from the Ukrainian capital, Kyiv, where he was attending the 35th anniversary of Ukraine’s independence, Pence said Americans are already struggling with high costs and urged negotiations over confrontation.

Mike Pence calls for negotiations between US and Canada

Pence told CNN, "We hear about the issue of affordability right now," and added, "I think the last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada."

The former VP said there has been "hot rhetoric" from both Trump and Canadian Prime Minister Mark Carney. Pence said he hoped, for “the sake of American families,” that “what we’re looking at here is negotiation and not confrontation in a trade war.”

He further said, “That’s how I would advise the president: Drive a hard bargain. But let’s pursue free trade with free nations, most especially our trading partners to the north."

His remarks came days after the United States imposed 50% tariffs on roughly $20 billion worth of Canadian imports, including whisky and hockey gear, following the collapse of trade talks.

Donald Trump takes dig at Canada after trade talks fail

Trump took a dig at Canada after negotiations with Ottawa failed. In a Truth Social post, on 22 August, he wrote, "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!!!"

Trump made these remarks as Washington's 50% tariffs on Canadian imports were set to come into effect at 12:01 am on 22 August.

Previously, the US president had expressed optimism about finalizing a deal with Canada and cited his good relationship with Carney. Trump had said that Washington “should be able to have a deal with Canada.”

US imposes 50% tariffs on Canada

On 21 August (local time), Washington announced 50% tariffs on Canadian goods, including plywood, liquor, electrical equipment and hockey gear, Bloomberg reported. The development came after the two countries had been negotiating for several weeks and had prepared a draft agreement proposing to lower tariffs on some Canadian steel and aluminium to 25% and reduce duties on Canadian automobiles to 15%.

In return, Ottawa was expected to withdraw the retaliatory measures it introduced last year. Reports said the White House was seeking several concessions, including the removal of Canada's counter-tariffs on US vehicles and an end to restrictions on the retail sale of American alcoholic beverages in most Canadian provinces.

Canada announces reciprocal tariffs

Following the collapse of trade negotiations between the two long-standing allies, Carney announced retaliatory tariffs on US imports, saying he had rejected a "bad deal" as tensions between the countries continued to escalate.

Carney said, "You're at war when you get attacked. We got attacked." He added, "In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal."

He also said, "We cannot accept what they've offered, and we will not give what they've asked."

The Canadian PM noted that one of the main reasons the deal fell through at the last minute was Washington's decision to impose restrictions on Canada's trade with other countries.

He said Washington's negotiators had also made unacceptable "threats" to the French language and "Quebec culture", referring to the French-speaking province in eastern Canada.

According to AFP, the Canadian PM said Ottawa's tariffs would target the US steel and dairy industries and take effect on 8 September. He added that further details would be announced next week.