The US president expected Ottawa to bow to tariff demands, but Canada is striking back – and it could cost Americans

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Earlier this year, a survey found that Canada, along with Switzerland, was the best-liked country in the world. We all know this kind of polling is about as scientific as a high school popularity contest, but at least anecdotally, Canadians have a reputation for being friendly and welcoming, respectful and polite. Many people would find it difficult to dislike Canadians.

But not Donald Trump, who in a “hold my beer” moment this week demonstrated that he, at least, finds it easy to resent Canadians. The US president called the country “difficult and unreasonable”, and in a particularly hysterical moment, threatened to rename a lake, after trade talks collapsed.

They should ask the question Reagan asked at the end of his debate against Jimmy Carter: ‘Are you better off now than you were before this presidency?’

The midterm elections are already upon us, and every Democrat and independent running against a Republican should ask voters the question Ronald Reagan asked on 28 October 1980, at the end of his televised debate against Jimmy Carter: “Are you better off now than you were before this presidency?”

Unless you’re very, very rich, the answer is obviously: “No, I’m worse off.”

Energy bills have increased three times faster than the rate of inflation while Trump has been president. The national average monthly utility bill reached $280 in early 2026, a 12% increase since the end of 2024, just before the second Trump administration took office.

Paper products among hardest-hit sectors after trade negotiations broke down, with 25-50% tariffs estimated

• Are you a Canadian boycotting US products? We’d like to hear from you

Using the bathroom or having a cry is about to become more expensive for North Americans as the US and Canada enter a full-fledged trade war that threatens to flush away decades of peaceful trading between the two nations.

After trade negotiations broke down between the two countries last weekend, Mark Carney, the Canadian prime minister, vowed to match US tariffs “dollar for dollar” and unveiled a list of nearly 900 American goods that will face 25% to 50% tariffs starting on 8 September.

With the federal deficit near 6% of GDP and the national debt over $40tn, America’s fiscal position looks increasingly precarious

• Bessent ‘will lose’ battle with bond markets, ex-mentor warns

Are we seeing the first signs of panic in Donald Trump’s Treasury? The US is by far the world’s biggest debtor, and the steady rise in global long-term interest rates – which I have long argued was inevitable – is starting to cause real pain.

Until now, the Treasury secretary, Scott Bessent, has dismissed concerns about US debt, which recently surpassed $40tn, as a big nothingburger. Growth, in his telling, will be so spectacular the US will easily be able to meet its interest obligations without any significant tax rises or spending cuts, while the rest of the world will happily keep feeding it money. But if Bessent really believes that, why is he trying to strong-arm the bond market by fiddling with the maturity structure of government debt?