Former US President Donald Trump has reignited trade tensions with Canada by signing an executive order imposing new tariffs on a range of Canadian goods. The move, announced on Thursday, has drawn sharp criticism from Ottawa and raised concerns among businesses on both sides of the border.
Details of the Tariff Order
The order targets key Canadian exports, including aluminium, steel, and timber, with duties ranging from 10% to 25%. Trump justified the decision by citing "unfair trade practices" and the need to protect American industries.
Canadian Response
Canadian Prime Minister Justin Trudeau condemned the move, calling it "economically damaging and politically motivated." The Canadian government has vowed to retaliate with counter-tariffs on US goods, potentially escalating the trade dispute.
Market Reactions
Financial markets reacted swiftly, with shares in major Canadian exporters dipping sharply. Analysts warn that prolonged trade tensions could disrupt supply chains and push up consumer prices in both countries.
Historical Context
This isn't the first time Trump has targeted Canada with tariffs. During his presidency from 2017-2021, similar measures led to a brief trade war before being resolved through negotiations. Observers question whether this latest move signals a more protectionist US trade policy ahead of the 2024 election.
The White House has yet to comment on whether President Biden's administration plans to challenge the order in court.
