Canada announced Wednesday that it will impose over $20 billion in retaliatory tariffs in response to President Donald Trump’s sweeping 25 percent tariffs on all steel and aluminum imported into the United States. The move escalates tensions between the two longtime trade partners, adding to fears of a full-scale trade war.
Trump introduced the tariffs as part of his broader effort to boost U.S. manufacturing and correct trade imbalances with countries such as Canada.
However, critics warn that these measures could increase prices for American consumers and disrupt industries reliant on imported materials. The European Union has also responded with countermeasures against U.S. exports after facing similar tariff increases.
Trump Promises Response to Canadian and European Tariffs
When asked Wednesday in the Oval Office whether the U.S. would respond to retaliation from Canada and Europe, Trump was firm in his stance.
“Of course, I will respond,” he told reporters.
Trump has repeatedly defended his tariff policies, arguing that other countries have taken advantage of U.S. trade policies for too long. However, American businesses and consumers could feel the impact of the escalating tensions, with the possibility of higher prices on goods ranging from automobiles to household appliances.