President Donald Trump ended trade talks with Canada yesterday after what he called a “direct assault” on U.S. trade policy. He accused Canada of launching an anti-tariff advertisement featuring Ronald Reagan, which he claimed misrepresented American economic principles.
Consequently, he declared that the U.S. will impose new tariffs on Canadian goods within the next week. Meanwhile, Canadian Prime Minister Mark Carney responded that Ottawa would re-engage only “when it is appropriate” and maintained Canada will protect its economy.
Analysts say that Trump’s decision marks a significant escalation in the U.S.-Canada trade dispute and could drive up prices for consumers in both countries. Supply-chain experts warned that sectors such as autos, steel, and digital services may bear the brunt of the fallout.
Further, markets responded with concern as Canadian export-reliant industries prepared for possible retaliation. Moreover, some Canadian companies began redirecting business toward China and India as precaution.
Trade observers noted that Canada sends nearly 75 percent of its exports to the U.S., making the country vulnerable to American tariff actions. Additionally, the disruption threatens the framework of the USMCA trade agreement and signals a tougher U.S. trade posture under Trump.
As tensions mount, Canadian and American businesses brace for higher costs and disrupted trade flows.
