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Canada braces for prolonged trade war as counter-tariffs take effect
Confirmed
In Short: Canada's retaliatory tariffs on US goods have come into effect, with no sign of a trade deal on the horizon, as tensions escalate ahead of US midterm elections.
Canada's retaliatory tariffs on a range of US goods have come into effect, with no sign of a trade deal on the horizon, as tensions escalate ahead of US midterm elections. The Canadian government attributes a modest bump in manufacturing to consumers and businesses buying more made-in-Canada products. However, fresh fish and lobster were omitted from the list after pushback from the seafood industry, highlighting the delicate balance Canada must strike as it retaliates against its largest trading partner.
President Donald Trump has threatened to halt all US business with Bombardier, a major Canadian company contributing over C$7bn to Canada's annual GDP in 2024. The trade war has become an issue in many states, with some Americans expressing indifference towards Canada, while others are worried about the upcoming midterms. Prime Minister Mark Carney has said that Canada is still in search of a deal with the US that is 'durable' and in the best interests of both countries.
According to reports, the Trump administration’s claims about the trade war are not breaking through, and there is a push from Republicans in border states to find an off-ramp from the trade war. The relationship between Canada and the United States was upended by Trump’s return to the White House, and tensions escalated after trade talks between the two countries broke down last month. Carney has said he wants to diversify Canada's trade away from the US, but the current trade war could be used as a template for resisting the Trump administration's trade policies.
As the United States braces for pivotal midterm elections this November, there’s a new and unexpected issue on voters’ minds in many states: President Donald Trump’s escalating trade war with Canada. The trade war has made it harder to export goods to Canada and has made some things more expensive for people in those states to import. The current trade war began after Trump returned to office and imposed a series of tariffs on Canadian goods despite having negotiated and repeatedly praised the North American trade agreement during his first term.
What's confirmed
- Canada's levies will apply to nearly C$28bn ($20bn; £15bn) of American products, from steel to furniture to cotton T-shirts, and will be as high as 50%.
What's still developing
- US trade representative Jamieson Greer, meanwhile, said on Thursday that the ball is in Canada's court.
- What tariffs will really cost Canadians and Americans Trump took aim at Canada in a series of other Truth Social posts over the weekend, including one that called Canada's exchange rate with the US "unacceptable".
- Next time make that bullet stick to Trumps head the world will be a better place without him Most Americans don’t care anything of Canada.
- Cant say the same with Carney and Canada Anonymous is a village idiot…with too much time in his parents bsmt.
- Most of us in Canada aren’t under the delusion that things will change in 2 years.
- If it’s a democrat, entrenched trade interests will make it difficult to reverse policy.
- Watch: How much can Canada fight back in its trade war with the US?
- A source with who was not authorized to speak publicly said Republicans from border states approached United States Trade Representative Jamieson Greer during an event at the White House on Sept. 2.