The United States is set to impose 50 per cent tariffs on $20 billion worth of Canadian imports after last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies. In response, Canadian Prime Minister Mark Carney said Canada would match the new US tariffs dollar for dollar. While a trade war between the countries looks imminent, the political impact is likely to be even bigger than the economic fallout.
The two countries sold each other $880 billion worth of goods and services last year, and this shows how deeply intertwined their economiesThe tariffs were initially set to kick in at 12:01 AM on Wednesday; however, the deadline was extended by three days by US President Donald Trump himself. Earlier, Trump had expressed hope over a possible US-Canada Trade Deal, saying that he has a “good relationship” with Canadian Prime Minister Mark Carney and “we should be able to deal with Canada.”