Bessent Mocks Canada's Retaliation in Trade Dispute

U.S. Treasury Secretary Scott Bessent on Monday mocked Canada's ability to retaliate in an escalating trade dispute, dismissing the notion of a "tit-for-tat" war with a country whose economy is roughly 13 times smaller than that of the United States. The remarks came during an interview on CNBC's "Squawk on the Street" from Asheville, North Carolina, where Bessent is hosting a two-day gathering of G20 finance ministers and central bank governors.

Bessent was asked by host Sara Eisen whether financial markets should view the escalating rhetoric as a tit-for-tat trade war between the neighboring countries. "Well, I don't think you can be in a tit-for-tat with someone who's 13 times larger than you are," Bessent replied. He added, "They say they're doing okay. What else are they going to say?"

The exchange occurred amid a deepening trade conflict. On August 22, the United States imposed a 50 percent tariff on an estimated $28 billion of Canadian goods, including beer, cheese, and electronics, on top of existing duties on aluminum, lumber, vehicles, and steel. Canada announced it would respond with dollar-for-dollar tariffs, with Finance Minister François-Philippe Champagne stating...