Canada is ready to retaliate if talks with Washington fail to reverse the U.S. decision to double tariffs on steel and aluminum imports, as President Trump's move adds pressure on global trade and pushes allies into urgent negotiations.
Canada warned it is ready to retaliate if talks with the U.S. fail to reverse President Trump’s decision to double tariffs on steel and aluminum imports. The new 50% tariffs took effect on Wednesday, hitting major U.S. trading partners - especially Canada and Mexico.
“We are in intensive negotiations with the Americans, and, in parallel, preparing reprisals,” Prime Minister Mark Carney told lawmakers.
Trump's tariff hike is part of his broader trade policy aimed at reducing the U.S. trade deficit and boosting domestic manufacturing. However, the Congressional Budget Office has warned the tariffs will hurt U.S. economic output.
The EU, also affected by the measure, reported some progress in ongoing trade talks with Washington. Both sides indicated further high-level discussions are expected soon.
Only the UK is currently exempt due to a preliminary trade deal reached during a temporary pause in broader U.S. tariffs.
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