Canada-US Trade War Escalates as Trump Imposes 50% Tariffs
President Donald Trump's trade war with Canada has been ongoing for nearly two years, with tensions escalating in recent months. In January 2025, Trump announced plans to impose a 25% tariff on Canadian imports, citing national security concerns and undocumented immigration.
The move was met with swift retaliation from the Canadian government, led by Prime Minister Justin Trudeau at the time. Canada imposed retaliatory tariffs worth $29.8 billion Canadian dollars ($20.7 billion) on U.S. imports.
Trump later backtracked on the 25% tariff, agreeing to a 30-day pause and implementing limited tariffs instead. However, the trade war continued, with Trump imposing new tariffs worldwide in April 2025, including a 25% levy on auto imports.
Canada's current Prime Minister, Mark Carney, matched these tariffs with a retaliatory measure on non-USMCA compliant vehicles imported from the U.S.