Trump's Trade War with Canada Enters New Phase Amid Ongoing Tensions
US President Donald Trump's trade war with Canada has been ongoing since his second term in office. The tensions began in January-February 2025, when Trump announced a plan to impose 25% tariffs on Canadian goods, citing national emergency over undocumented immigration and drug trafficking. This move was met with retaliation from Canada, which imposed its own tariffs worth $29.8 billion Canadian dollars ($20.7 billion) on US imports.
The trade war continued throughout the year, with Trump imposing various tariffs on Canadian goods and services. In April 2025, he announced 'reciprocal' tariffs on nearly all of America's trading partners, but didn't unveil additional levies on Canada. The US Court of International Trade later ruled that Trump overstepped his authority in late May 2025.
The tensions escalated further in July-October 2025, with Trump threatening to impose a 35% tariff rate on Canadian goods. However, Carney promised to match the new import taxes 'dollar for dollar' with retaliatory tariffs. The situation remained uncertain, with both sides imposing various levies and countermeasures.
In November-February 2026, the Supreme Court ruled that Trump's use of emergency powers was unconstitutional, striking down the tariffs imposed on Canada. Trump responded by enacting a temporary 10% global levy using a different law.