US Tariffs Escalate Trade Tensions with Canada

Canada has been hit by another wave of US tariffs in a retaliatory move following Canadian countermeasures introduced last year. The new tariffs target about $28 billion of Canadian exports, around five percent of total exports to the US.

The move is seen as an attempt by President Donald Trump to pressure Canada into making concessions in negotiations over a new trade agreement, specifically the Canada-United States-Mexico Agreement (CUSMA).

Although this latest wave of tariffs relies on a little-known provision of US trade law dating back to 1930, it may also be testing the waters for broader trade action against other sectors or countries.

Canada has refused to sign a bad deal and instead bought time to expand other trade relationships. Despite repeated tariff shocks, the Canadian economy has held up better than expected, according to Prime Minister Mark Carney.