Trade War Turns Hotter
President Trump said on Monday he will hike US tariffs on Canadian cars and trucks from 25% to 50% starting Jan 1, sparking a flare‑up in the ongoing US‑Canada trade fight.
Canadian leaders, including Prime Minister Mark Carney, are set to hold a news conference on Tuesday to map out a response and keep businesses afloat.
Both sides blame the other for last‑minute requests that strained negotiations. Trump calls the added tariffs ‘unfair’, while Canada says it won’t negotiate until the U.S. is ‘on the right foot.’
Biz owners across the border fear 50% tariffs will jack up prices. One Oregon boutique expects its Canadian pillow design to soar 50% to $90 and is staying hopeful for a quick resolution.
The dispute could ripple into the USMCA – a trade pact that represents $1.6 trillion of North American trade – and threaten a recession for Canada if the deal unravels.
Canada plans to counter with reciprocal tariffs on Sept 8 and has pledged a $11 bn investment to boost its coast guard and diversify trade routes.
