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Canada's Trade War with U.S. Escalates Amid Midterm Elections Pressure
Confirmed
In Short: Canada's retaliatory tariffs on U.S. goods have intensified, with no sign of a trade deal on the horizon.
The trade war between Canada and the United States has escalated, with Canada's retaliatory tariffs on a range of U.S. goods coming into effect on Tuesday. According to reports, one sector that saw a modest bump was manufacturing, with consumers and businesses buying more made-in-Canada products. However, Canada later omitted fresh fish and lobster from the list after pushback from its seafood industry, highlighting the delicate balance it must strike as it retaliates against its largest trading partner.
Canadian Prime Minister Mark Carney stated that Canada is still in search of a deal with the U.S. that is "durable" and in the best interests of both countries. In contrast, U.S. trade representative Jamieson Greer said that the ball is in Canada's court. President Donald Trump has threatened to halt all U.S. business with Bombardier, a major Canadian airplane manufacturer, unless it moves its manufacturing south. Bombardier contributes over C$7bn to Canada's annual GDP, according to a report commissioned by the company.
The trade war has become a significant issue in many states, particularly as the U.S. braces for pivotal midterm elections this November. Republican candidates are being confronted with trade policies against Canada that are making it harder to export goods and are making some things expensive for people in those states to import. A source close to the U.S. Trade Representative's office reported that Republicans from border states approached Jamieson Greer at a White House event, urging him to find an off-ramp from the trade war because it was becoming politically toxic.
The relationship between Canada and the United States was upended by Trump's return to the White House. Tensions escalated last month after trade talks between the two countries broke down. The current trade war began after Trump imposed a series of tariffs on Canadian goods despite having negotiated and praised the North American trade agreement during his first term. If Canada's defiant approach succeeds, it could be used as a template for resisting the Trump administration's trade policies, according to a U.S. official.
In light of the trade action threatened by the U.S., it would be inappropriate to proceed with a celebratory event between the two countries, said Jenna Ghassabeh, a spokesperson for Canadian Infrastructure Minister Gregor Robertson. The trade war has not only affected businesses but also the political landscape, with many Americans expressing indifference towards Canada, while others are worried about the upcoming midterms.
What's confirmed
What's still developing
- 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?
- It’s not clear whether the Trump administration’s claims about the trade war are breaking through.
- “I’m not going to talk about federal issues,” Blakeman said when asked by Spectrum News about the trade tensions in late August.