US-Canada trade war escalates as Trump threatens tariff hike on autos after Carney vows to retaliate
Mark Carney accused Trump of wanting to "destroy" Canada's auto industry, and said he would only resume trade talks if the US comes with the "right attitude".
President Donald Trump has threatened to raise US tariffs on automobiles and auto parts from Canada, escalating the ongoing trade war between the neighboring nations. The proposed tariffs, which would increase from 25% to 50% as of January 1st, were announced in response to Canada's decision to suspend trade negotiations. US Trade Representative Jamieson Greer claimed that Canada presented unreasonable demands, while Canadian Prime Minister Mark Carney accused Trump of attempting to destroy Canada's auto industry.
Canada vowed to retaliate with dollar-for-dollar tariffs on US goods, while Ford, Ontario's premier, warned Trump to "kiss my ass" and suggested that Canada should levy extra taxes on US oil, gas, electricity, and critical minerals. The breakdown in talks comes after a series of tense statements from both sides, with Canada accusing the US of wanting to destroy its auto industry and the US accusing Canada of making last-minute demands.
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