'Nasty' trade talks: Carney responds after Trump calls Canada's leadership 'nasty'

Toronto: Canadian Prime Minister Mark Carney on Thursday (local time) described trade negotiations with the United States as "nasty" after US President Donald Trump criticised Canada and its leadership while renewing threats to expand tariffs on Canadian imports.

Despite the sharp rhetoric, Carney said Canada would remain engaged in the negotiations, stressing that the discussions were crucial to protecting Canadian jobs and businesses.

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

Trump criticism on Canada’s leadership

Trump had accused Canada's leadership of being difficult during a speech in Las Vegas on Wednesday.

"Canada's nasty. They are. They're nasty. I love the people, but they're nasty. Nasty leadership," Trump said.

Responding to the comments, Carney acknowledged that Canada was in the middle of a "tariff war" with the United States but laughed when asked about Trump's description. He said Canadian officials were in Washington this week for negotiations and expected further discussions with Trump after speaking to him last week.

The US has already imposed tariffs on Canadian steel, aluminium and automobiles. Trump has also threatened to levy an additional 50 per cent tariff on more Canadian goods starting August 19.

Trade tensions continue to escalate

Trump has argued that tariffs will encourage manufacturers to relocate production to the United States, although economic data has so far shown little evidence of such a shift.

The dispute has further strained relations between the two countries, with Trump's repeated suggestion that Canada should become the 51st US state drawing strong criticism from Canadians. The remarks have also prompted many Canadians to cancel travel plans to the United States.

Meanwhile, US Trade Representative Jamieson Greer has said Canada and China are the only countries to have retaliated against Trump's tariffs, pointing to restrictions on US alcohol sales in some Canadian provinces. Canadian officials have maintained that their countermeasures were a direct response to existing US tariffs.

Months of strained relations

The latest exchange comes after months of rising tensions between the two leaders.

At the World Economic Forum in Davos earlier this year, Carney criticised powerful countries for using economic pressure against smaller nations. Trump responded by saying, "Canada lives because of the United States. Remember that, Mark, the next time you make your statements."

Canada remains one of the United States' largest trading partners, and economists have warned that expanding tariffs could increase prices for American consumers at a time when inflation and the cost of living remain key concerns ahead of the November 3 midterm elections.

Carney also said existing US tariffs on aluminium have already pushed aluminium prices in the United States up by 58 per cent.

"That's not a good situation for American companies," he said.

(With AP inputs)