Victor Davis Hanson says the escalating trade dispute between the United States and Canada has entered a fourth and more serious stage, arguing that Prime Minister Mark Carney has placed Canada in an increasingly difficult economic position while intensifying anti-American rhetoric.

“Hello, this is Victor Davis Hanson for the Daily Signal. I'd like to offer an update on the Canadian-American trade spat,” Hanson said.

Hanson described the dispute as developing through several stages, beginning with surprise that the neighboring countries had reached such a contentious point.

He said the second stage involved Carney portraying the United States as responsible for the dispute and accusing Washington of interfering with Canadian sovereignty.

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“The second stage was Prime Minister Carney started to suggest that the United States was solely culpable, was a bully,” Hanson said.

Hanson said disagreements included Chinese electric vehicles, steel and aluminum, along with Canadian policies affecting American digital media companies.

He argued that China was using inexpensive products to gain access to the American market through Canada and criticized Carney for resisting American objections.

The third stage, according to Hanson, involved reconsidering Carney’s explanation for the dispute and examining Canada's own economic policies.

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“Why would he side with a totalitarian communist government with Maoist roots that has a million Uyghurs in camps, destroys international trading protocols with dumping product before the cost of production, asymmetrical mercantile trade surpluses, money and currency manipulation, copyright and patent violations?” Hanson asked.

Hanson also criticized Canadian immigration, energy and social welfare policies while arguing that the country has failed to take full advantage of its natural resources, including oil, gas, timber, potash and precious metals.

He pointed to pipeline difficulties between Canadian provinces as an example of problems he said were created domestically rather than by the United States.

“We didn't cause their problems,” Hanson said.

“Alberta can't make a pipeline to British Columbia because of us. It can make a pipeline into Washington. It can make a pipeline into the United States in the Midwest to sell its oil, but it can't do it between provinces.”

Hanson said the dispute has now reached stage four, which he characterized as more dangerous economically for Canada.

“Stage four is more serious to Canada,” Hanson said.

“The jobs report came out. They've lost 41,000 jobs just in one week of the tariff war. We created 160,000 in August. It's going to get worse for Canada.”

He argued that the substantial difference in economic size between the two countries leaves Canada vulnerable in an extended trade conflict.

Hanson also characterized Carney as a globalist whose approach to immigration, energy, defense and trade has left Canada overly dependent on the United States.

“Mr. Carney, who had three passports before he was prime minister, a Canadian, a British, and an Irish, he was the epitome of a globalist, and he wasn't a nationalist,” Hanson said.

Hanson then criticized what he described as increasingly hostile Canadian rhetoric toward the United States, including booing at sporting events and the “elbows up” slogan.

He also accused Carney of attempting to influence American midterm politics through tariffs targeting politically competitive and Republican-leaning states along the border.

“More importantly, he's now interfering in U.S. internal midterm politics,” Hanson said.

“He's got left-wing governors, senators deliberately taking the Canadian side, trashing their own president, Gavin Newsom cutting videos in support of Canada, not and then targeting these tariffs at red and purple states along the border to get Trump supporters financially endangered and therefore they won't vote for Republican congressional candidates.”

Hanson argued that Carney is underestimating the risks of a prolonged confrontation with the United States.

“He doesn't know what he's doing. He does not know what he's doing. He's living in a fantasy house,” Hanson said.

The historian also focused on defense, arguing that Canada depends heavily on the United States for protection as security concerns increase in the Arctic.

“It depends on the United States to protect it from incoming aircraft or missiles,” Hanson said.

Hanson said Canada’s economic relationship with the United States makes an escalating confrontation particularly risky.

He also pointed to Carney’s personal and financial connections to the United States while criticizing his calls for Canadians to withstand the economic consequences of the dispute.

Hanson concluded with a warning that increasingly aggressive rhetoric could change how Americans view their northern neighbor and deepen the economic consequences for Canada.

“And I would just caution Mr. Carney: the one thing you do not want to do is so gen up this war that you get on the wrong side of the American people,” Hanson said.

He argued that reciprocal tariffs initially intended to address the trade imbalance could ultimately have broader consequences if the dispute continues.

“And don't get on the wrong side of the American people with your cheap rhetoric; it won't end well,” Hanson concluded.

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