Donald Trump has imposed a 50% tariff on a wide range of Canadian goods, escalating trade tensions between the North American neighbours and prompting Prime Minister Mark Carney to warn that Ottawa is looking at “all options” for retaliation.
The US president announced the fresh duties in response to what he called “unequal treatment” of American cars, dairy and alcohol. Everyday consumer items such as wine and hockey sticks, as well as industrial goods like cement, are on the target list – though key Canadian exports including energy, potash, critical minerals and fish have been spared.
“Trump imposes 50% tariffs on Canada over 'unequal treatment'; Carney warns Canada will consider all options.”
“Canada has been very, very tough on us over the years,” Trump told reporters. “No other presidents done anything about it. I love Canada, I love the people of Canada, many friends that live in Canada. Without us, there's no way they can survive.”
The White House said the tariffs will take effect in 30 days. The move comes after the US Supreme Court ruled earlier this year that many of Trump’s previous tariffs, imposed under emergency powers, were illegally enacted. The president has since sought other legal avenues to push through his flagship trade policy.
Carney said he had spoken to Trump and both leaders agreed to “intensify” trade talks in a bid to calm the growing tensions. But the Canadian prime minister struck a defiant note, telling reporters that “all options” were on the table in terms of how Canada could respond.
Since the tariff war broke out more than 18 months ago, Carney said, Canadians have “stood together” by buying home-produced goods and agreeing new trade routes with other countries. “[The] country is stronger, stronger because we are united, and we will remain united,” he said.
Canada, one of the US’s closest trading partners, was among the few countries to retaliate against Trump’s earlier tariffs, placing a 25% levy on about C$30bn of American goods. The latest duties have fuelled speculation about a potential wider tariff announcement by the US on countries across the world. US Trade Representative Jamieson Greer said on Tuesday that he expected to “see some action soon” when asked about the possibility of forthcoming levies.
Trump has argued the tariffs will boost American manufacturing and jobs, but some economists have warned that higher charges on imported goods risk pushing up prices for consumers.
