US President Donald Trump’s plan to impose a 25% tariff on Canadian exports is set to start on Tuesday, threatening to deal a significant blow to the country’s economy. The tariffs would be applied to various Canadian goods, including aluminum and steel.
Canadian officials have spent weeks trying to persuade Trump to abandon his plans, but so far, efforts have been unsuccessful. Trudeau has promised that Canada will retaliate with its own tariffs on US imports, targeting products worth $30 billion, including Kentucky bourbon.
Industry executives predict that the tariffs would lead to significant disruptions in the automotive and agricultural sectors. “A 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” said Jim Farley, CEO of Ford Motor Company.
Canada is also bracing for a global 25% tariff on steel and aluminum, which would further exacerbate economic tensions between the two countries. The potential impact on Canada’s economy is significant, with many experts warning that the tariffs would lead to inflation, supply disruptions, and widespread job losses.
The US government has claimed that Canadian exporters will cover the cost of the tariffs, but economists argue that this is unlikely. “The result would be inflation and supply disruption in the United States, while Canadian industries could face large-scale layoffs,” said Jean Simard, president of the Aluminium Association of Canada.
Canada’s response to Trump’s threats has been swift and decisive, with Trudeau vowing to defend his country’s interests. The situation is likely to remain volatile in the coming days as both countries prepare for a potential trade war.
Source: https://www.nytimes.com/2025/03/03/world/canada/trump-canada-tariff-economy-impact.html