On Tuesday, U.S. President Donald Trump backed down from a trade war escalation that had threatened a massive surge in tariffs on Canadian steel and aluminum and new tariffs on Canadian electricity. In turn, Ontario paused surcharges on electricity to U.S. customers.
The developments Tuesday marked a slight de-escalation in a trade war between the U.S. and Canada after the U.S. imposed 25% tariffs on imports from Canada. In a near-immediate response, Canada slapped a 25% retaliatory tariff on $30 billion worth of goods.
The tit-for-tat measures between the U.S. and Canada reignited a trade war that had been averted a month earlier, when Trump paused the implementation of tariffs after reaching an agreement with Canada on border enforcement. Trudeau sharply criticized the tariffs, calling them a "dumb" policy that does not “make sense.”
After President Trump imposed tariffs on Canada on Tuesday, Prime Minister Justin Trudeau made an extraordinary statement that was largely lost in the fray of the moment.
“The excuse that he’s giving for these tariffs today of fentanyl is completely bogus, completely unjustified, completely false,” Trudeau told the news media in Ottawa.
“What he wants is to see a total collapse of the Canadian economy, because that’ll make it easier to annex us,” he added
Canadian officials took Trump’s comments seriously, not least because he had already publicly said he wanted to bring Canada...
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