Vance calls Canada a 'state' in slip amid trade tensions

US Vice President JD Vance referred to Canada as a “state” during a campaign rally, calling it a “Freudian slip” amid escalating US-Canada trade tensions. He quickly corrected himself and criticized Canada’s military spending and trade policies. Vance said Canada underinvested in its military and relied on US protection, and grouped Canada with China as having the world’s worst trade policies. The remarks follow the collapse of US-Canada trade talks last week, with President Donald Trump threatening 50% tariffs on Canadian cars, steel, and auto parts from January 2027. Canadian Prime Minister Mark Carney rejected US proposals as unfair and walked away from negotiations, vowing retaliation. Ontario Premier Doug Ford suggested using critical minerals and electricity exports as leverage, while the dispute pressures the integrated auto, energy, and manufacturing sectors on both sides.