Trump's Canada Tariffs Threaten Bilateral Trade, Spark Political Tensions
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The latest U.S.-Canada conflagration flared up last month when Trump said he planned to hit Canada with 50% tariffs. He complained that Canada had been unfairly restricting U.S. exports of dairy, alcoholic beverages and autos. Trump set a deadline of Aug. 19 - last Wednesday - for the two countries to reach a deal and head off the tariffs.
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NPR EconomyThe move comes after President Trump imposed 50% tariffs on many Canadian goods and threatened more after trade talks broke down on Friday. This is a developing story that will be updated.
BBC BusinessTrump's threat was the latest escalation after Canada walked away from trade negotiations late Friday night, moments before a US-imposed deadline that would add a 50% levy on nearly $20bn (C$28bn; £14bn) of Canadian imports.
FortuneThe Trump administration’s most recent trade war comes with a hefty cost, with some $872.3 billion traded between the nations in 2025. After negotiations collapsed this weekend, Canadian Prime Minister Mark Carney said the U.S. “asked for too much and offered too little,” while Trump says Canada is “foolish” to engage in a trade war.
RealClearMarketsTrump's New Trade War w/Canada: Needless As It Is Costly Zeeshan Aleem, MSN A president with even the slightest bit of common sense would not have entered this conflict.
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Trump has also volleyed insults in the direction of the Prime Minister’s office and his people. The president has continually referred to Canada as the “51st state” of the U.S. and recently suggested renaming Lake Ontario to Lake America—a tactic he also deployed when negotiating with his southern neighbors in Mexico.
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Washington Times BusinessCanadians, though, are in no mood for a Trump-friendly trade deal. The American president has enraged the Canadian public with inflammatory talk of making their country the 51st U.S. state. And on Tuesday, instead of trying to lower the temperature, he declared that he was considering changing the name of Lake Ontario to Lake America. He has also repeatedly hit Canada with tariffs and threats of them, including when he suggested he might punish Canada for wildfires that were blackening U.S. skies.
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Canadian officials said the U.S. made unacceptable demands and said their counter-tariffs would start Sept. 8.
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BBC BusinessCanadian officials have said that the US introduced last-minute demands that were "unacceptable", including a clause limiting which countries Canada could sign trade deals with.
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The two countries exchanged about $872 billion in goods and services last year. Canadian crude imports equal nearly 20% of total U.S. petroleum consumption, according to the U.S. Energy Information Administration, part of the Department of Energy.
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BBC BusinessCanada accounts for 60% of total US crude oil imports and close to 100% of US natural gas exports, according to Canadian government data.
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With the breakdown threatening to harm one of the world’s largest trading relationships and clouding efforts to renew the United States-Mexico-Canada Agreement that Trump negotiated during his first term, experts cautioned that there’s still time to pull back from the brink of an even bigger trade war.
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BBC BusinessThe trade war also put into question the future of an existing North American trade pact, known as the UMSCA, that was signed by Trump in his first term with Canada and Mexico.
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Vance asks Mainers to vote Republican — as Trump ups the trade war with Canada Vice President JD Vance's visit marked his second to Maine's 2nd Congressional District in four months.
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Washington Times BusinessVice President JD Vance visited Maine on Monday, where he praised “our very independent friend Susan Collins” and assured voters “we’re very mindful of the fact that Maine is a border state with Canada.” He said the administration is trying to make sure Maine “gets a fair deal.”
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The president said Canada taps into the rich American market without buying many American products in return, resulting in a trade deficit that can reach $60 billion.
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Ontario Premier Doug Ford said Wednesday he’s willing to cut off electricity exports to the U.S. if the trade war between Canadian Prime Minister Mark Carney and President Trump escalates.
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Tariffs, which are duties on foreign goods brought to U.S. markets, are Mr. Trump’s preferred tool for economic leverage.
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NPR EconomyTariffs and export controls have been the Trump administration's main economic security tools. Neither are working very well right now.
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02 Bloomberg US Should Consider a Ban on Some Canadian Goods, Suggests Greer The suggestion by the Trump administration’s top trade negotiator that the US ought to consider banning some Canadian goods has added another threat into a trade dispute between Washington and Ottawa. Tyler Kendall reports on Bloomberg Television. (Source: Bloomberg)
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03 Fortune The usually cordial relationship between Washington and Ottawa has soured considerably in recent weeks, with trade talks derailed and the neighbors now levying multi-billion-dollar tariffs against one another.
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04 Financial Times ‘We got attacked’: Canadians unite in fury against Trump’s latest tariff salvo Washington’s aggressive trade stance prompts defiance from northern neighbour
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05 BBC Business It comes after US-Canada trade talks collapsed late last week, with each side accusing the other of making unreasonable last-minute demands.
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06 RealClearMarkets Canada strengthened its border, removed retaliatory tariffs, and got slapped with tariffs anyway. Global governments are learning that US commitments cannot ... Read Full Article »
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07 National Review Economy Trump’s Canada Tariffs Are Not on Mission Wasn’t this supposed to be a president elected to change our relationship with China?
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08 Washington Times Business TORONTO — U.S. President Donald Trump says his country does not need Canada. But every day, roughly 4 million barrels of Canadian crude oil flow south, helping fuel American cars, trucks and airplanes and supply U.S. industry.
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09 NPR Economy The White House's preferred economic tools are hitting snagsTariffs and export controls have been the Trump administration's main economic security tools. Neither are working very well right now.
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