Pence Warns Trump Against Trade War with Canada, Says Tariffs Will Hurt American Families and Businesses

Former Vice President Mike Pence warned that escalating U.S.-Canada tariffs could place additional strain on American consumers and businesses, urging President Donald Trump to return to the negotiating table rather than deepen the trade conflict.

Pence Warns Canada Tariffs Could Hurt Americans

Pence made the comments Sunday on CNN's "State of the Union" as trade tensions between the U.S. and Canada intensified.

"American businesses and American consumers pay American tariffs," the former vice president said.

He added, "I think the last thing we need when our economy is recovering is a trade war with Canada."

Pence, who said he was involved in negotiating the USMCA agreement, acknowledged Trump's aggressive negotiating approach.

"I know the tough posture that President Trump takes, often accompanied by short-term actions and heated rhetoric," he said.

Pence Urges Trump to Avoid Trade War

Pence noted that Canada has responded with similar rhetoric but urged both sides to focus on reaching a deal.

"My hope is that, for the sake of American families and the American economy, what we're seeing now is negotiation rather than confrontation in a trade war," Pence said.

Mike Pence Warns Trade War with Canada Could Damage American Economy | The Hill

— Mike Pence August 24, 2026

Trump's Tariff Dispute with Canada

Trump has threatened to raise tariffs on Canadian cars, trucks, auto parts, and steel to 50% starting January 1, 2027, following the breakdown of U.S.-Canada trade talks.

The threat has weighed on shares of General Motors, Ford Motor, and Stellantis N.V., while boosting U.S. steelmakers such as Cleveland-Cliffs Inc., Nucor Corp., and Steel Dynamics Inc.

Trump said companies could avoid the tariffs by moving production to the United States.

Canadian Prime Minister Mark Carney responded by announcing retaliatory tariffs on U.S. goods starting September 8, covering steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Carney said Washington's final demands were excessive, stating, "They are asking for too much and offering too little."

Anthony Scaramucci predicted Trump would reach a deal with Canada "within the next two weeks," arguing that political pressure ahead of the midterm elections could prompt Trump to back down.

Trump Weighs China Tariffs

Trump is also considering a 7.5% tariff on Chinese imports over concerns about China's overcapacity and export growth.

The move is being weighed against efforts to maintain the U.S.-China trade truce and Trump's planned meeting with Chinese President Xi Jinping.