‘Complete Betrayal’: Canada reels as Trump tariff rattles major trading relationship

Published On Feb 2, 2025, 7:47 AM

Canada prepares for a significant economic impact following President Trump's imposition of 25% tariffs on nearly all imports from Canada and 10% on energy products. In retaliation, Canada plans to enforce 25% tariffs on around C$155 billion ($107 billion) worth of American goods, including popular products like orange juice, motorcycles, and vehicles. This escalation in trade tensions has provoked strong reactions from Canadian leaders, who emphasize the detrimental effects on both economies, especially in sectors like automotive and agriculture. Trudeau aims for a measured response while urging collaboration over conflict, while various provincial leaders propose actionable steps against US imports.

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The ongoing trade conflict is likely to create volatility in stocks related to industries that rely heavily on cross-border trade, particularly in automotive and agriculture sectors heavily dependent on Canadian resources and exports. The retaliatory measures could worsen the existing trade imbalance and impact profitability for US companies linked to these sectors.

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