Business

Trump slaps 50% tariffs on Canada and Carney vows to 'intensify' trade talks

Donald Trump has announced 50% tariffs on Canadian imports, marking a major escalation in trade tensions between the United States and its northern neighbour. The tariffs will apply to a wide range of goods including steel, aluminum, lumber and dairy products, and are set to take effect in 30 days. In response, Canadian Finance Minister Chrystia Freeland vowed that Canada would "intensify" trade talks with the US, saying the country was prepared to "stand up for our workers and industries." The tariffs represent a significant increase from the 25% duties previously imposed on certain Canadian metals under Section 232 of the Trade Expansion Act. Trade experts warn the move could trigger retaliatory measures from Canada and disrupt integrated North American supply chains, particularly in the automotive sector where parts frequently cross the border multiple times during production. The Canadian Chamber of Commerce estimated the tariffs could cost the Canadian economy up to C$30 billion annually and threaten 150,000 jobs. Canada is the United States' largest trading partner, with bilateral trade in goods and services totalling over $900 billion annually. The announcement comes amid ongoing negotiations over the renewal of the United States-Mexico-Canada Agreement (USMCA), which is set to expire in 2026.

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