Trade Tensions Escalate: U.S. Increases Tariffs on Canadian Goods

In a significant move, U.S. President Donald Trump has heightened tariffs on Canadian goods to 35%, marking a new chapter in the ongoing trade dispute between the two countries. Goods shipped through other countries to bypass these tariffs will now incur a steep 40% levy, according to official statements from the White House.

The U.S. justifies this escalation by pointing to Canada's alleged lack of action on fentanyl trafficking, despite Canada's minimal contribution to U.S. fentanyl imports. The Canadian government, led by Prime Minister Mark Carney, expressed disappointment over the decision, emphasizing their commitment to strengthening Canada's economy amidst these challenges.

Meanwhile, Ontario Premier Doug Ford urged Ottawa to impose a 50% counter-tariff on U.S. imports, insisting on the necessity for Canada to stand firm. Despite these tensions, Trump has indicated openness to future discussions, providing a glimmer of hope for a diplomatic resolution to this economic showdown.

(With inputs from agencies.)