What to know about Canada's escalating trade war with the U.S. — SkimNews
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- Canada imposed retaliatory tariffs on roughly $20 billion of U.S. goods — including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment — at rates of 15%, 25% or 50%, matching Washington's tariffs dollar for dollar via an order in council effective 12:01 a.m. Tuesday.
- Trump threatened to bar Bombardier from selling aircraft in the U.S. market unless the company manufactures planes domestically, posting on Truth Social: "NO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren't good enough!"
- U.S. spirits exports to Canada fell more than 70% year over year after eight of Canada's 10 provinces restricted or banned American alcohol sales, according to the Distilled Spirits Council.
- Trump has threatened 50% tariffs on Canadian vehicles, auto parts and steel next year if Canada does not "fall in line" — Carney warned that could leave Canadian industries "gradually wound down in Canada and wiped out."
- Carney will address the European Parliament next week, extending the global platform he built with his January Davos speech warning that great powers use economic integration to coerce smaller countries.
- Canada has so far declined to weaponize its biggest leverage — 4 million barrels of oil per day flowing to U.S. refineries, plus heavy Canadian potash dependence from American farmers — even as trade talks collapsed Aug. 21.
Why it matters: Canada sends over 70% of exports to an economy 13 times its size, yet Carney's defiant stance has rallied domestic support and drawn global attention at Davos and the European Parliament — Trump's threatened 50% auto tariffs would hit North American supply chains where parts and finished vehicles cross the border repeatedly during production.
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