Relations between the United States and Canada have severely deteriorated with sparking an escalating cross-border trade war. On Tuesday Canada is set to announce retaliatory tariffs after US President Donald Trump threatened a massive 50% tariff on Canadian vehicles, auto parts and steel.
Canadian Prime Minister Mark Carney sharply criticized the move, accusing Washington of attempting to "destroy" Canada’s major industries and subordinate the nation.
"An attitude at the negotiation table that Canada is a subsidiary of the United States is not something we’re going to accept" Carney stated and adding that Canada is finding reliable trade partners everywhere except the US and Russia.
The diplomatic fallout follows the collapse of bilateral trade negotiations last Friday, which prompted Trump to impose immediate tariffs on $20 billion worth of Canadian goods. Trump escalated the dispute further on social media with accusing Canada of "ripping off" the US and launching personal attacks against PM Carney and Ontario Premier Doug Ford.
Despite domestic political differences the Canadian leaders are presenting a united front. Premier Ford brushed off Trump’s insults and warned that Canadians are prepared for an "economic war."
Ford threatened severe countermeasures if the dispute worsens, suggesting Ontario could cut off critical minerals vital for US national security and manufacturing and halt electricity exports that currently power 1.5 million American homes. "Everything is on the table" Ford warned.
Given the deeply integrated US-Canada supply chains in particularly in the automotive and manufacturing sectors also this escalating trade dispute threatens to inflict severe economic damage on businesses and workers on both sides of the border.
