Canada Partially Spared from Trump’s Tariffs but Faces Economic Impact

Canada managed to avoid the harshest of US President Donald Trump’s new tariffs on Wednesday, but the country still faces economic repercussions. While goods covered under the United States-Mexico-Canada Agreement (USMCA) were exempt from a 10% tariff, other Canadian exports will be hit with a 25% tariff, including foreign car imports, starting Thursday. Additionally, a 10% tariff will apply to energy and potash, while the existing 25% tariffs on Canadian steel and aluminum remain unchanged.

Although Canada and Mexico dodged the worst of Trump’s so-called “Liberation Day” tariffs, Canadian Prime Minister Mark Carney acknowledged the financial strain they would impose. He vowed to retaliate with countermeasures and bolster Canada’s economic strength within the G7. Carney emphasized that millions of Canadians would feel the impact and pledged to support affected workers. He also noted that Trump’s actions have fundamentally altered the global trade system.

Carney is expected to outline a detailed response after a meeting with the premiers of Canada’s provinces and territories on Thursday. His administration aims to counter the tariffs effectively while maintaining economic stability amid shifting international trade dynamics.