Trade War Gets Hotter: Trump Brings 50% Tariffs, Canada Brings the Work Plan

Ottawa: Canadian Prime Minister Mark Carney on Tuesday criticised the United States’ decision to impose fresh 50% tariffs on a range of Canadian goods, calling the move a “direct violation” of the Canada-United States-Mexico Agreement (CUSMA). Carney said his government would continue to support Canadian workers, farmers, businesses and families as trade tensions with Washington intensify. He also stressed that Canada remains committed to defending its economic interests while keeping the door open for negotiations with the United States. The latest tariffs reportedly target several categories of Canadian exports, including motor vehicles, dairy products and alcoholic beverages. The move marks another escalation in the ongoing trade dispute between the two neighbouring countries. In a statement, Carney said the new measures were part of a broader series of unilateral trade actions by the US that Canada believes are inconsistent with its obligations under CUSMA. He pointed to earlier US tariffs on the Canadian automobile sector, arguing that Ottawa had responded within its rights. Carney said the trade measures and repeated concerns over Canadian sovereignty had brought provinces, territories and citizens together in support of the domestic economy. “Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families,” he said. The Canadian prime minister also said Ottawa had already presented detailed proposals aimed at resolving the dispute and updating CUSMA. According to him, Canada is prepared to intensify discussions with the US in the coming weeks. The White House, meanwhile, has defended the new tariffs, citing what it described as discriminatory treatment of American products in areas including automobiles, dairy and alcoholic beverages. The tariffs are expected to take effect after a 30-day period, leaving some room for further negotiations between the two countries. According to the report, several categories, including energy products, potash, fish and critical minerals, have been excluded from the latest measures. The fresh tariff action has added to uncertainty for businesses operating across the highly integrated US-Canada trade relationship. With both sides maintaining their positions, the coming weeks are likely to determine whether negotiations can ease tensions or whether the dispute will lead to further retaliatory measures. For Canada, the immediate focus remains on protecting workers and domestic industries while maintaining economic stability. For the US, the tariffs represent another step in its broader effort to reshape trade relationships and secure concessions from trading partners. As negotiations continue, businesses and consumers on both sides of the border will be watching closely for signs of a settlement that could prevent the trade dispute from escalating further.