Trump's Tariff Turmoil: A Strain on US-Canada Trade Relations

In a move likely to escalate tensions, President Donald Trump has declared a 35% tariff on Canadian imports. This decision, communicated through a Thursday letter to Canadian Prime Minister Mark Carney, seeks to compel Canada to address fentanyl smuggling. The import tax hike deepens the existing trade rift between the long-time allies.

The tariff increase from Trump's initial 25% announcement in February signifies his administration's aggressive approach amidst a broader global trade strategy. Canada's prompt pushback, including retaliatory tariffs on US goods, highlights its resistance to such pressure and marks a pivot in stemming dependence on its southern neighbor, opting to forge stronger ties with Europe and the UK.

Hours before Trump's announcement, Carney shared a picture with British Prime Minister Keir Starmer, emphasizing Canada's reliable economic partnerships globally. As tensions rise, the implications for existing agreements like the United States-Mexico-Canada Agreement remain uncertain, with reviews scheduled for 2026.

(With inputs from agencies.)