Canada Braces for Major Trade War with US as Trump Threatens Tariffs

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Canada is preparing for a significant trade dispute with the United States following incoming President Donald Trump's announcement of a proposed 25 percent tariff on Canadian imports. Foreign Minister Melanie Joly warned that this could lead to the "biggest trade war between Canada and the US in decades."

Joly emphasized that these tariffs would impose a financial burden on American consumers and jeopardize jobs, while vowing that Canada is ready to respond robustly to any economic aggression. Ottawa is reportedly considering retaliatory measures, including higher duties on a range of American goods, such as steel, ceramics, and orange juice.

Outgoing Prime Minister Justin Trudeau echoed these concerns, stating that Canadian defense measures would be unequivocal to protect the country's economy. Economic analysts have projected that such a trade war could severely impact Canada's GDP, potentially leading to a decline of more than five percent and a rise in unemployment rates.

As tensions mount, the implications of these tariffs extend beyond national borders, highlighting the interconnectedness of North American economies.

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