U.S. Treasury Secretary Scott Bessent criticized Canada’s military readiness on Monday amid escalating tensions in the ongoing trade dispute between the two nations. Speaking during an appearance on CNBC’s “Squawk on the Street,” Bessent directed pointed remarks at Canadian Prime Minister Mark Carney, accusing him of turning trade negotiations into a “political shouting match.”

“We’re not at war with Canada,” Bessent said, sarcastically questioning Canada’s military capabilities by referencing the country’s limited naval assets. The comments came during a G20 finance ministers meeting in Asheville, North Carolina.

Bessent, 64, accused Carney, 61, of prioritizing political interests over the welfare of the Canadian public, suggesting that the prime minister’s stance was motivated by personal or political gain rather than national benefit. He also reiterated claims that the United States had extended a highly favorable trade agreement offer to Canada, which Carney ultimately rejected at the last minute.

The remarks follow a significant intensification of the trade conflict between the neighboring countries. On August 22, the United States imposed a 50% tariff on approximately $28 billion worth of Canadian exports, including products such as beer, cheese, and electronics. These tariffs added to pre-existing duties on aluminum, lumber, vehicles, and steel, further straining bilateral economic relations.

In response, the Canadian government announced plans to levy equivalent tariffs against U.S. goods, with these countermeasures scheduled to come into effect on September 8. Ottawa has framed its response as a proportionate retaliation to Washington’s aggressive trade policies.

The dispute reflects broader challenges in U.S.-Canada trade relations, with both sides accusing each other of unfair practices and undermining longstanding economic partnerships. As the tariff battle escalates, officials from both countries have yet to signal a clear path toward resolution.