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Canada has launched a forceful counterpunch in an escalating trade dispute with the United States, unveiling a 25% tariff on 155billionCAD(106.6 billion USD) worth of American goods.
Prime Minister Justin Trudeau announced the measures Saturday, targeting everyday items from beer and bourbon to clothing, appliances, and construction materials.
The decision directly mirrors U.S. President Donald Trump’s recent tariffs on Canadian and Mexican imports, framed by the White House as a response to cross-border drug trafficking and immigration concerns.
“We don’t want to be here, we didn’t ask for this,” Trudeau declared, vowing to defend Canadian industries and workers. The first wave of tariffs—30billion—takes effect Tuesday, with the remaining 125 billion phased in over the next three weeks to cushion business disruptions.
The economic stakes are stark. Over $2 billion in goods flows daily across U.S.-Canada-Mexico borders, underscoring deeply intertwined supply chains. Yet the retaliatory measures risk inflaming prices for consumers on both sides of the border. Christopher Sands of the Wilson Center likened the standoff to “mutually assured destruction,” warning of immediate pain for households and businesses. Former central banker Mark Carney echoed concerns, predicting slowed growth, higher inflation, and reputational damage to the U.S. as a trade partner.
The political rhetoric has grown equally volatile. The White House insists its tariffs hold trading partners “accountable” for curbing illicit drugs, though Trudeau dismissed the logic, noting less than 1% of U.S. fentanyl imports originate in Canada. Meanwhile, Trump has threatened further escalation if Canada retaliates, stoking fears of a prolonged conflict. Notably absent from Canada’s tariff list, however, is U.S. crude oil—a nod to Canada’s role as America’s top foreign energy supplier, still subject to a lighter 10% U.S. duty.
Behind the tit-for-tat lies a broader reckoning. While Trump frames trade as a lever for immigration and security goals, Ottawa sees the tariffs as an economic broadside. Analysts warn the clash could fracture decades of economic cooperation, testing the resilience of a relationship that has long prioritized partnership over protectionism. For now, neither side shows signs of backing down—a precarious reality for two nations whose fortunes remain inextricably linked.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/canada-strikes-back-retaliatory-tariffs-ignite-north-american-trade-war/
