The US and Canada continue to wage a tariff war

 

 

The US-Canada tariff war continues. Last week, US President Donald Trump threatened to increase tariffs on Canada. In a letter posted on Truth Social, Trump said that US tariffs on Canadian products would increase from 25% to 35% from August 1. He also warned Prime Minister Mark Carney not to raise Canada's counter-tariffs on the US.

In response to Trump's tariffs, Canada has announced tariffs on $96 billion worth of US products, according to Oxford Economics. However, Canadian Prime Minister Mark Carney had exempted many products from the tariffs. Canada announced the tariffs in several phases in the spring. On March 4, it imposed a 25% tariff on $30 billion worth of US imports. On March 13, a 25 percent tariff was imposed on $29.8 billion worth of U.S. goods, including steel and aluminum. As of April 9, a 25 percent tariff has been imposed on $35.6 billion worth of cars and parts that are not in compliance with existing free trade agreements. The Canadian government has currently prepared a list of goods that will face tariffs. This includes items such as food, clothing, and cosmetics.