- President Donald Trump has threatened to impose a unilateral 50 percent tariff on all Canadian cars, trucks, automotive parts, and steel starting Jan. 1, 2027, further escalating the trade war between the two nations.
- Trump justified his proposed tariffs on Truth Social by citing a “not sustainable” $60 billion trade deficit and accusing Ottawa of charging “ridiculously high” tariffs on American farm products.
- The president's claims misrepresent the U.S.-Mexico-Canada trade deal negotiated during his first term, which allows both nations to impose protective tariffs on agricultural products that exceed import quotas.
- Canadian Prime Minister Mark Carney has criticized Trump's shifting justifications for the trade war and signaled that Canada could retaliate by cutting off critical energy supplies, including natural gas, electricity, and crude oil exports to the U.S.
- Carney halted trade talks and recalled Canadian negotiators after Washington introduced unfair new demands that undermined the benefits of a trade deal and demonstrated a lack of commitment to a true economic partnership, his office said.
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