The Great North American trade war

U.S. President Donald Trump and Canadian Prime Minister Mark Carney meet in the Oval Office at the White House in Washington, D.C., U.S., May 6, 2025 Credit: REUTERS/Leah Millis

It’s official: the US and Canada are in a trade war, a remarkable rupture in one of the world’s closest alliances. After Canada withdrew from talks last Friday, the US applied a 50% tariff on roughly $20 billion worth of Canadian goods, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. In response, Canadian Prime Minister Mark Carney said today that Canada will retaliate with its own tariffs, as high as 50%, on $20 billion in American imports starting next month. US President Donald Trump, meanwhile, has plans for 50% tariffs on Canadian automobiles, trucks and auto parts starting January 1. Read more.