US-Canada trade war escalates as Trump threatens tariff hike on vehicles
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 escalated the US-Canada trade war by announcing plans to raise tariffs on Canadian automobiles and related parts from 25% to 50% starting January 1st. This move comes after trade negotiations between the two nations collapsed late last week, with each side accusing the other of unreasonable demands. Canada's Prime Minister, Justin Trudeau, accused Trump of attempting to destroy the Canadian auto industry.
The Trump administration claimed Canada introduced last-minute changes. Canada announced a news conference on Tuesday to outline its response to the trade war and support Canadian workers. The collapse of talks marked a shift from earlier optimism, with both countries insisting their demands were unacceptable. The escalating tensions also raise concerns about the USMCA, a trade pact with Mexico, which could face renegotiation or even collapse.
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