President Donald Trump recently increased tariffs on Canadian imports from 25% to 35%, escalating tensions with Canada—the United States’ second-largest trading partner after Mexico.
Earlier this year, Trump had already imposed 25% tariffs on a range of Canadian goods, including steel, automobiles, and other products not covered under the U.S.-Mexico-Canada Agreement (USMCA). In response, Canada enacted $43 billion worth of retaliatory tariffs on U.S. products.
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Key sectors in U.S.-Canada trade include energy, motor vehicles, aerospace-related goods, and roughly $30 billion in agricultural products.
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During a press briefing on July 17, White House Press Secretary Karoline Leavitt criticized Canada’s role in trade negotiations, stating, “Our neighbors to the north have been pretty difficult to deal with.”
Earlier that same week, Dominic LeBlanc, Canada’s minister responsible for U.S. trade relations, said Prime Minister Mark Carney is expected to speak directly with Trump “in the coming days” to address the trade dispute.
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