President Donald Trump’s decision to impose 50% tariffs on about $20 billion of Canadian autos, auto parts and steel has opened a new front in the North American trade fight.
Canadian Prime Minister Mark Carney has signaled a dollar-for-dollar retaliation starting September 8, signaling a crisis spillover into sectors where the U.S. is far more exposed.
Ontario Premier Doug Ford has warned that if Washington intensifies pressure on Canadian industry, the province could curb electricity exports and mineral access.
“Everything’s on the table. I’ll do whatever it takes,” Ford told the Associated Press, reviving a threat that markets had largely treated as political rhetoric earlier in the year.
The timing of the escalation couldn’t be worse. Canadian retaliation threatens the Midwest – Trump’s important voting base ahead of the midterm elections. It also undermines his supply chain efforts.
