Canada Strikes Back Against Trump Trade War with $20 Billion in Tariffs
Canada has retaliated against US President Donald Trump's escalating trade war by imposing tariffs on approximately $20 billion worth of American goods. This move comes in response to a series of tariffs imposed by Washington on Canadian products, which have been met with defiance from Prime Minister Mark Carney.
The Canadian government claims its tariffs match the dollar-for-dollar and rate-for-rate measures taken by the US, targeting hundreds of American products including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment. The tariffs will take effect at 12:01 a.m. on Tuesday under an executive action known as an order in council.
RBC Economics, the research arm of the Royal Bank of Canada, has stated that while these measures may not significantly impact US growth overall, they could have a substantial effect on certain businesses.
Carney has warned that Trump's demands could lead to the hollowing out of key Canadian industries and limit the country's independence. The Prime Minister's stance has rallied public support behind him, with many Canadians cutting travel to the US and boycotting American goods in response to Trump's aggressive trade policies.
The current trade war began after Trump returned to office and imposed tariffs on Canadian goods despite having negotiated and praised the North American trade agreement during his first term. Many of these tariffs violate the pact, further straining relations between the two countries.