Carney's Trade War Clock Ticking Down Amid Escalating US-Canada Dispute

Canadian Prime Minister Mark Carney has won widespread support from his country's citizens after taking a tough stance against U.S. President Donald Trump's trade policies.

However, experts warn that this approval may be short-lived as the consequences of the ongoing trade war begin to sink in, including rising unemployment and factory shutdowns.

Carney's government imposed dollar-for-dollar counter-tariffs on $20 billion of U.S. goods and a C$7.5 billion ($5.41 billion) package of economic support measures in response to Trump's tariffs on Canadian steel, aluminum, autos, and lumber imports.

'Canada cannot win an economic war of attrition with the U.S.,' said Julian Karaguesian, a former adviser at Canada's Finance Ministry and economics professor at McGill University. 'Carney's leverage will start to diminish if this escalating trade war starts to show up in palpable increases in unemployment, factory shutdowns and declining income.'

The U.S. economy is 13 times larger than Canada's, and economists warn that a continued escalation of the trade war could result in 90,000 lost jobs for Canadians.