Kathmandu— Former United States President Donald Trump indicated he is considering changing the name of Lake Ontario to Lake America amid escalating trade disputes between the US and Canada, citing diminished business expectations with the Canadian province of Ontario. The proposal, made on Tuesday via his Truth Social platform, follows the implementation of 50 percent tariffs on $20 billion worth of Canadian goods by the Trump administration after trade negotiations failed. This move echoes a previous attempt to rename the Gulf of Mexico as the Gulf of America through an executive order last year.

Escalating Trade Tensions

The US and Canada are currently embroiled in a trade dispute, with Canada preparing to announce retaliatory measures on Tuesday following the imposition of new tariffs. These tariffs affect approximately 5.5 percent of Canadian exports to the US, encompassing goods such as wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. Trump has taken an increasingly assertive stance, urging Canadian leaders to “fall in line” or face even more severe consequences than those already imposed.

Canadian Response

Canada’s minister responsible for US trade, Dominic LeBlanc, stated that the federal government had decided months ago not to publicly respond to social media posts originating from the US administration. LeBlanc shared this position during a CNBC interview, signaling a deliberate strategy of non-engagement with Trump's online rhetoric. Prime Minister Mark Carney has accused Washington of attempting to subordinate Canada.

Economic Interdependence at Risk

Canada and the United States maintain one of the world’s largest trading relationships, characterized by deeply integrated supply chains across crucial sectors like automotive, energy, agriculture, and manufacturing. The potential for a prolonged trade fight poses significant risks to businesses and workers in both countries, threatening disruption to these established economic connections. Carney further asserted that US trade demands suggest an intention to “destroy our major industries,” including cars, steel, and aluminum.

The situation remains fluid as Canada prepares its response to the new tariffs, with the potential for further escalation or a return to negotiations still uncertain.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.