Trump drastically escalates trade war with Canada

The Trump administration has doubled tariffs against Canada in an unprecedented move that is bound to raise tensions further.

According to The New Arab, the increased tariffs, announced by the US on March 11, will impose a 50% tariff on all steel and aluminium imports, doubling the previous rate of 25%.

The tariffs, which affect everything from car productions and electronics to construction equipment, have caused concern among manufacturers on both sides of the border as they scramble to find alternative solutions. Canada traditionally supplies around half of the US aluminium imports.

Justifying the heavy-handed tariffs against Canada, Trump stated that they were in response to Canada’s own tariffs on US electricity imports.

In addition to the new steel and aluminium tariffs, the Trump administration has threatened to expand tariffs on Canadian car manufacturing imports, with Trump himself stating that such a move would effectively “shut down the automobile manufacturing business in Canada”.

This move by Trump aligns with his longstanding policy of imposing tariffs on other countries to strengthen the US economy in the long run.

As previously reported by Maghrebi, Trump first announced tariffs against Canada on his inauguration day, January 20. At the time, he justified them by citing concerns over border security between the two countries and claiming that previous trade agreements were not in the US’s favour.

These tariffs were subsequently paused in March 6 due to fears about inflation and stagnation in the US economy, leading to hopes that alterative agreements could be negotiated between the two nations.

However, with these newer and tougher tariffs now being implemented, that hope seems increasingly unlikely.

Responding to the US’s actions, Canadian Prime Minister Mark Carney vowed that his government would hit back “with maximum effort” in response to the US tariffs.

What is clear now is that the trade war between the US and Canada is unlikely to end anytime soon, creating great uncertainty about the  future of US-Canadian relations.

The New Arab, Maghrebi