Canada Avoids New Tariffs, but Trade Struggles Continue
U.S. tariffs on Canada remain unchanged as President Trump confirms no new trade restrictions despite earlier speculation. However, existing trade restrictions—including 25% tariffs on steel and aluminum—remain firmly in place.
While countries worldwide are set to face 10% blanket tariffs, Canada was left off the list of 60 nations receiving additional “reciprocal” tariffs. Despite this, Prime Minister Mark Carney made it clear that Canada will retaliate forcefully, as existing U.S. tariffs are expected to impact millions of Canadians.
What This Means for Canada
- No additional tariffs, but current trade barriers remain.
- Canada’s auto industry faces uncertainty as a 25% tariff on foreign-made cars is set to take effect.
- Carney vows retaliation, with economic measures to be determined after meeting provincial leaders.
Political and Economic Reactions
Carney’s response to the tariffs has boosted his Liberal party’s standing in national polls, positioning him as a strong leader against Trump’s aggressive trade policies. Meanwhile, Conservative leader Pierre Poilievre has called for a more immediate “targeted retaliation” and urged for CUSMA renegotiations before the 2026 review.
The opposition in the U.S. Senate has tried to block Trump’s tariff expansion, but with a Republican-majority House, those efforts may not succeed.
What’s Next for Canada?
The Canadian government is now focused on protecting jobs and industries from economic fallout. As businesses brace for uncertainty, economic leaders warn that global trade is shifting, and Canada must prepare for long-term challenges.
Source: BBC
