Canada Strikes Back: Tariff War Intensifies Between Long-Time Allies

Canada announced retaliatory tariffs on $107 billion of U.S. imports following President Trump's new trade barriers. The move risks escalating tensions and affecting economic relations between the allies, with potential impacts on both Canadian and American citizens. Prime Minister Trudeau urged Canadians to support domestic products.


Devdiscourse News Desk | Updated: 02-02-2025 09:42 IST | Created: 02-02-2025 09:42 IST
Canada Strikes Back: Tariff War Intensifies Between Long-Time Allies
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In a significant escalation of trade tensions, Canada plans to impose 25% levies on a wide range of U.S. imports, Prime Minister Justin Trudeau announced. This move comes in response to President Donald Trump's recent tariffs on Canadian, Mexican, and Chinese goods, raising fears of a trade war with global impacts.

Trudeau revealed that Canada's retaliatory tariffs, affecting $107 billion worth of American goods, would roll out in two phases. Duties on $30 billion will begin on the same day as Trump's tariffs, with the rest following in three weeks, targeting products like American bourbon, fruit juices, and household appliances.

The trade dispute comes amid a domestic political crisis for Trudeau, who faces declining approval ratings and a leadership contest within his Liberal Party. Meanwhile, Canada continues to emphasize the strength of its economic and strategic alliances with the U.S., urging citizens to prioritize homegrown products and travel.

(With inputs from agencies.)

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