Trump's Tariff Tactics: U.S.-Canada Trade Tensions Escalate

U.S. President Trump has increased tariffs on Canadian goods to 35%, citing fentanyl smuggling as a reason. The move intensifies a trade dispute with Canada, whose Prime Minister Carney expressed disappointment and called for protective measures. Trump threatened similar actions against other nations not compliant with U.S. terms.


Devdiscourse News Desk | Updated: 01-08-2025 10:48 IST | Created: 01-08-2025 10:48 IST
Trump's Tariff Tactics: U.S.-Canada Trade Tensions Escalate
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In a significant escalation of trade tensions, U.S. President Donald Trump has signed an executive order raising tariffs on Canadian goods from 25% to 35%. The White House linked the decision partly to Canada's alleged inaction on curbing fentanyl smuggling.

The adjustment to the trade policy, not covered under the U.S.-Mexico-Canada agreement, is another development in the ongoing tariff confrontation initiated by Trump. Canadian Prime Minister Mark Carney criticizes the decision, asserting the impact will be severe on industries like lumber, steel, aluminum, and automobiles.

The Canadian government's response included calls for counter tariffs and a focus on diversifying export markets. As the situation continues to evolve, both sides remain without a consensus on trade policy adjustments, which are crucial for their economic relations.

(With inputs from agencies.)

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