U.S.-Canada Trade War Escalates as Tariffs Bite
The U.S.-Canada trade dispute has escalated, with the U.S. imposing a 50% tariff on $20 billion worth of Canadian imports, covering wine, hockey sticks, cement, paper, textiles, and electronics.
Canadian Prime Minister Carney announced retaliatory tariffs equivalent to those imposed by the United States, targeting sectors such as steel, dairy products, household appliances, and agricultural equipment.
The breakdown in negotiations stemmed from new clauses proposed by the U.S. side, including issues related to automobile classification, Canada's authority over trade agreements with other countries, and cultural sovereignty.
The exchange rate between the U.S. dollar (USD) and the Canadian dollar (CAD) has been affected, with USD/CAD trading near 1.3845 and extending its rebound from a three-month low.