Trade Tensions Escalate: Canada Prepares for U.S. Tariff Reprisal

The global trade landscape faced ongoing turbulence as Canada's trade officials readied potential countermeasures against the United States in response to newly imposed tariffs on steel and aluminum. The European Union reported forward movement in negotiations with Washington this week, marking a concerted effort to mitigate the sweeping impacts of President Donald Trump's economic policies.

Doubling of the tariffs on the favored U.S. imports sent ripples through global markets, threatening to adversely affect America's neighboring partners like Canada and Mexico. Prime Minister Mark Carney revealed Canada's strategy to negotiate while simultaneously bracing for reciprocal trade actions should discussions falter.

This development comes as the Congressional Budget Office raised alarms about the potential slowdown in the U.S. economic output due to the increased tariffs. Meanwhile, protections on critical minerals by China added another dimension to trade disruptions, complicating matters for industries reliant on these resources across Europe and America.

(With inputs from agencies.)