US Trade War Escalates as Canada Announces Retaliatory Measures Worth $20 Billion

Washington has launched an economic offensive against Iran and Canada simultaneously, declaring that Tehran is beaten while asserting that Canada could not survive without the US. Neither country has submitted yet.

Ottawa announced retaliatory measures on Monday, matching 'dollar for dollar' the 50% duties imposed by President Trump over the weekend after a breakdown in trade talks.

The tariffs encompass more than 700 US goods and are worth about $20 billion. The most significant are 50% tariffs on American steel and aluminum, doubling the current rate.

In China, the US is threatening to cut businesses that help Iran evade sanctions off from the American financial system. While Beijing can reject the demands, its biggest lenders still have strong incentives to preserve access to US dollars.