Trump triggers US-Canada trade war with 35% tariff

In a bold move, former President Donald Trump has announced a 35% tariff on all Canadian imports to the United States, igniting a fresh trade war with America’s northern neighbor. The decision, aimed at addressing what Trump calls an “unfair trade deficit,” has sparked immediate backlash from Canadian officials, who vow to retaliate with counter-tariffs on U.S. goods. This escalation threatens to disrupt the deeply integrated economies of the two nations, which share one of the world’s largest bilateral trade relationships.

Image credit: Freepik

The tariffs target a wide range of Canadian products, including energy, timber, and agricultural goods, which are critical to both countries’ supply chains. Trump justified the move by pointing to Canada’s alleged protectionist policies, particularly in dairy and softwood lumber, claiming they harm American workers. “Canada’s been taking advantage of us for too long,” Trump stated, promising to protect U.S. industries. Economists warn that the tariffs could raise consumer prices in the U.S., given Canada’s role as a major supplier of oil, natural gas, and other commodities.

Canadian Prime Minister Justin Trudeau condemned the tariffs as “unacceptable” and promised swift retaliatory measures. Potential targets include U.S. exports like whiskey, automotive parts, and agricultural products, which could hit key American industries hard. The Canadian government is also exploring diplomatic channels to de-escalate tensions, emphasizing the mutual benefits of free trade under existing agreements like the USMCA.

Businesses on both sides of the border are bracing for impact. The U.S. auto industry, reliant on Canadian parts, could face supply chain disruptions, while Canadian exporters fear losing access to their largest market. Analysts predict that prolonged trade hostilities could lead to job losses and economic slowdown in both nations.

As the situation unfolds, global markets are watching closely, with fears of broader trade disruptions. The U.S.-Canada trade war underscores the fragility of international trade agreements in an era of rising protectionism, leaving both nations at a critical juncture.