Canada's trade tensions with the US escalate as Ottawa prepares to impose $28 billion worth of tariffs on American goods starting Tuesday, in response to a 50% tariff imposed by President Donald Trump last month. Prime Minister Mark Carney's government has said it will not back down, despite warnings from experts that the fallout could be "ugly" due to the president's volatility.
The Canadian government has been at odds with the US since August 21, when trade talks broke down and Trump imposed the tariffs on nearly $28 billion worth of Canadian goods. In response, Canada is imposing tariffs ranging from 15% to 50% on American imports, including steel, aluminum, textiles, stoves, and hundreds of other goods.
The two countries have been in a tit-for-tat trade war, with each side imposing retaliatory measures. The US has said it will not back down, and Trade Representative Jamieson Greer has vowed to take further action. Meanwhile, Canada's unions have been vocal supporters of the countermeasures, with Unifor national president Lana Payne saying that Canada should "fight back" against Trump's tariffs.
The trade tensions have also led to a pause in antitrust work between the US and Canadian governments, with the US Justice Department instructing its officials to halt cooperation on cases and policy issues. However, the DOJ later disputed this report, saying it was just a temporary hold on one meeting.
As Canada prepares to implement its tariffs starting Tuesday, trade watchers are warning of an escalating war that could have significant economic consequences for both countries.
the fallout from this phase of the trade war could be ugly
