Canada is preparing to impose retaliatory tariffs on $30 billion worth of US imports in a move that underscores the continued tension between the two nations over steel, aluminum, and a host of other trade products.
Canadian officials have described the plan as a “dollar-by-dollar” strategy designed to match the impact of US tariffs. As part of this approach, a 25% duty will be levied on selected American items ranging from steel to various consumer goods.
The announcement follows earlier measures from the US that targeted steel and aluminum. President Donald Trump doubled those tariffs against Canada at one point, raising them to 50%, but the White House later withdrew that increase after Ottawa signaled it would delay imposing its own electricity surcharge on the US.
Canadian Foreign Affairs Minister Mélanie Joly, speaking at a recent press conference, said that “we will not back down and we will not give into this coercion,” calling out the “chaos” sparked by US trade policies.
Meanwhile, Ursula von der Leyen, President of the European Commission, characterized such tariffs as “unjustified trade restrictions,” adding that tariffs are essentially taxes.
“They are bad for business and worse for consumers. They bring uncertainty for the economy,” she said.
Despite this global pushback, Trump has continued to defend the new trade barriers, insisting that they are necessary to rebuild US industries. In remarks to business leaders, he said, “Markets are going to go up and they’re going to go down, but you know what? We have to rebuild our country.”
Amid the uncertainty, officials at the Federal Reserve have pointed to “heightened uncertainty about the economic outlook,” with Fed Chair Jerome Powell highlighting that it “remains to be seen how these developments might affect future spending and investment.”
In the midst of these gyrations, Trump has downplayed the notion of a tariff-fueled recession. Yet only days earlier of these comments, he conceded the possibility of a downturn on a Sunday talk show, feeding headlines about a potential recession risk.
Information for this briefing was found via The Guardian and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
