President Donald Trump on Sunday escalated his tariff war with Canada, charging that the close American ally “wants the benefits of being a state.”

The president invoked his threat of Canada becoming a state after the United States on Saturday imposed 50% tariffs on $20 billion worth of Canadian goods after trade talks between the two nations collapsed. Canadian Prime Minister Mark Carney promised to retaliate “dollar for dollar” after walking away from what he characterized as a bad deal.

“Canada wants the benefits of being a State, without being one!!!,” Trump railed on Truth Social in the wee hours of the morning. The president, who has repeatedly threatened to try to make Canada the 51st U.S. state, a notion laughed off by Canadian leaders, added: “They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!”

U.S. Trade Representative Jamieson Greer said he agreed to provide even better treatment to Canada than any other country, “offering significant tariff reductions on steel, aluminum, autos, and lumber.”

Greer blamed Canada for having “upended the careful balance reached in the past days.”

Carney said Saturday that Canada will retaliate with its own tariffs beginning Sept. 8 “in order to protect Canadian workers, farmers, families and businesses.” He said they would target steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

“They asked too much and offered too little,” Carney said.

The new tariffs are in addition to those imposed by Trump last year on Canadian aluminum, steel and autos, which Canada unsuccessfully sought concessions for in the latest round of negotiations.

Transportation Secretary Sean Duffy told Fox News on Sunday that he predicts “you’re going to see Mark Carney come to the table very, very quickly because it’s going to be devastating for his country.”

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