US-Canada Trade Update: Tariffs Remain
The trade war between the US and Canada is expected to have far-reaching consequences, with both countries imposing tariffs on each other's products, and the USMCA trade deal only providing partial relief, leaving 62% of Canadian imports still subject to the new tariffs.
Canada's tariffs against the US will remain in place despite President Trump's decision to postpone 25% tariffs on many imports from Canada for a month, as the Canadian government has already applied $30 billion worth of retaliatory tariffs on various American products.
The tariffs, which were imposed in response to the US tariffs on Canadian imports, will continue to affect American products such as orange juice, peanut butter, coffee, and motorcycles. Additionally, Ontario and other provinces will maintain their own tariffs and restrictions, including a 25% increase on electricity sold to 1.5 million Americans in Ontario.
Canadian Prime Minister Justin Trudeau has expressed his expectation that the trade war will last for the foreseeable future, following a heated call with President Trump. Despite the USMCA trade deal, which will exempt some imports from Canada and Mexico from the tariffs, 62% of imports from Canada will still face the new tariffs.
The ongoing trade tensions between the US and Canada are likely to have significant economic implications for both countries, and it remains to be seen how the situation will unfold in the coming months. As the trade war continues, both governments will need to navigate the complex web of tariffs and trade agreements to find a resolution that benefits both nations.
