On Thursday, the U.S. President Trump raised tariffs on Canadian imports from 25% to 35%, citing drug smuggling concerns, a claim dismissed by Canadian Prime Minister Mark Carney, who vowed to protect jobs during rising trade tensions.
The White House linked this decision partly to Canada’s alleged failure to stop fentanyl smuggling, though Canadian Prime Minister Mark Carney dismissed the claim, stating, “Canada accounts for just 1% of U.S. fentanyl imports and is working intensively to reduce these volumes.”
Carney expressed disappointment with the tariff hike, writing on X that “while we will continue to negotiate with the United States on our trading relationship, the Canadian government is laser focused on what we can control: building Canada strong.”
He warned that sectors such as lumber, steel, aluminum, and automobiles would be hardest hit but pledged to “protect Canadian jobs, buy Canadian goods, invest in industrial competitiveness, and diversify export markets.”
Ontario Premier Doug Ford, whose province generates about 40% of Canada’s GDP, demanded a strong countermeasure, calling for a 50% tariff on U.S. steel and aluminum imports.
Ford urged, “Canada shouldn’t settle for anything less than the right deal. Now is not the time to roll over. We need to stand our ground.”
Despite the escalation, Trump told that he remains open to talks with Canada and may speak with Carney soon. The U.S. also granted Mexico a 90-day extension to negotiate a deal and avoid similar tariff hikes.
Economists note Canada’s economy has shown resilience amid the tariffs and is expected to avoid recession.
Canadian exports to the U.S. have dropped slightly, with many companies diversifying their markets and increasing USMCA compliance, which currently exempts about 90% of Canadian exports.
Tensions have also been fueled by Canada’s recognition of Palestinian statehood, a move Trump criticized as making a future trade deal 'very hard' to achieve.
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Canadian Prime Minister Mark Carney spoke with U.S. President Donald Trump on Thursday and had "a productive and wide-ranging conversation" on trade challenges and other issues, Carney's office said in a statement.
Air Canada's unionised flight attendants reached an agreement with the country's largest carrier on Tuesday, ending the first strike by its cabin crew in 40 years that had upended travel plans for hundreds of thousands of passengers.
Air Canada and the union representing 10,000 striking flight attendants resumed initial talks on Monday night, the first contact in nearly a week, according to a statement from the Canadian Union of Public Employees (CUPE).
Canada is facing its second-worst wildfire season on record, with 7.8 million hectares already burned, and the fires could persist for weeks, according to federal officials.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Honduras has brought back mask mandates as COVID-19 cases and a new variant surge nationwide.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signing the measure on Thursday to counter Republican efforts in Texas.
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal authorities continue efforts to reduce crime and secure the capital.
North Korean leader Kim Jong Un praised troops who fought for Russia in Ukraine, calling them "heroic" during a ceremony honoring soldiers of the army's overseas operations.
The U.S. State Department confirmed that all 55 million visa holders are under continuous review, with potential revocations for security or legal violations.
Bangladesh and Pakistan have agreed to allow visa-free travel for holders of diplomatic and official passports, marking a major step in restoring relations after decades of restrictions.
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