Trump threatens ‘Lake America’ as Canada trade war erupts

The Canada trade war is getting nastier by the day — and now Donald Trump is threatening to drag one of North America’s Great Lakes into the fight. President Trump said Tuesday that the United States is giving “serious consideration” to changing the name of Lake Ontario to “Lake America,” an extraordinary new salvo as relations between Washington and Ottawa deteriorate. Trump said the move was being considered because the U.S. does not expect to be doing much business with Ontario in the future.

It is the latest sign that what began as a tariff dispute between two of the world’s closest allies is rapidly becoming a bitter political confrontation. Over the weekend, the United States imposed 50% tariffs on roughly US$20 billion worth of Canadian goods, affecting products ranging from hockey equipment to clothing and other manufactured goods. The measures cover about 5% of Canada’s annual exports to the United States.

Carney refuses to back down

Canadian Prime Minister Mark Carney, however, has decided not to blink. Negotiations collapsed after Carney said Washington introduced unacceptable last-minute demands. His government suspended further talks and vowed to retaliate dollar for dollar.

Beginning September 8, Canada plans to impose its own 50% tariffs on approximately the same value of American goods, with sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics among the targets.

Carney has argued that accepting Washington’s demands would compromise Canada’s economic independence and sovereignty. Among the most sensitive disputes were American demands involving Canada’s future trade relationships as well as protections surrounding French language and culture in Quebec. Trump sees the situation very differently. He has accused Canada of “ripping off” the United States and repeatedly complained about Canadian trade barriers, particularly those affecting American farmers.

The president is now threatening to widen the offensive even further, including raising tariffs on Canadian cars, trucks and auto parts to 50%.

Canada rallies behind Carney

Politically, Carney appears to have found his footing. An Angus Reid Institute poll found that 76% of Canadians believe their government did the right thing by walking away from the negotiations rather than accepting what Ottawa viewed as a bad deal. Even 62% said Canada’s proposed counter-tariffs were appropriate under the circumstances.

That public backing gives Carney considerably more room to confront Trump. And Ontario Premier Doug Ford is taking the rhetoric even further. Ford has warned that “everything is on the table,” including Canadian exports of electricity and crucial commodities such as nickel, uranium and potash. Ontario could potentially restrict electricity exports to American states if the trade confrontation keeps escalating. Such a move would almost certainly provoke an explosive response from Trump.

Canada trade war: From ‘51st state’ to ‘Lake America’

Relations were already damaged long before the latest tariffs. Trump’s repeated suggestions that Canada could become the 51st U.S. state infuriated Canadians and helped trigger a broader backlash against the United States. Canadians have increasingly boycotted American goods and reduced travel south of the border as political resentment has grown.

Now comes “Lake America.”

The provocative suggestion echoes Trump’s earlier decision to rename the Gulf of Mexico the Gulf of America for U.S. federal purposes. But Lake Ontario is shared by the United States and Canada, making the symbolism particularly inflammatory.

Even the conservative editorial board of The Wall Street Journal has blasted the confrontation. Its latest editorial was headlined “The Dumbest Trade War Revisited,” arguing that escalating the tariff battle with Canada makes little economic or political sense.

For decades, the United States and Canada maintained one of the closest economic relationships on earth. Now tariffs, threats, boycotts, electricity warnings — and even the name of a Great Lake — have become weapons in an increasingly personal Canada trade war. And neither Trump nor Carney appears ready to back down.