Canada Hits Back at Trump with $20 Billion in Retaliatory Tariffs

Canada has implemented $20 billion worth of retaliatory tariffs on American goods as part of its response to a long-standing trade dispute. The move comes after US President Donald Trump threatened to ban the sale of Bombardier jets in the US unless they are built in America.

Canadian Prime Minister Mark Carney has been firm in his stance, vowing to match any future trade actions taken by Trump. The new tariffs include a doubling of taxes on American aluminum and steel, as well as duties on paper products, construction materials, home appliances, and agricultural products.

The dispute between the two nations has escalated rapidly, with both sides trading pointed jabs. Trump has threatened to double auto tariffs to 50% on January 1 and has also suggested banning Canadian seafood imports. In response, Ontario Premier Doug Ford has warned that his province could restrict electricity exports to border states.

Ari Van Assche, a professor of international business at HEC Montréal, notes that in trade wars, the smaller economy tends to have more to lose than the larger one. He cites the example of Ford's automotive factory in Windsor, Canada, which relies on parts from the US.