Canada Braces for Potential Trade War Over Trump’s Tariff Threats

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Canada is preparing for a possible trade conflict with the United States as President-elect Donald Trump has announced plans to impose a 25 percent tariff on Canadian imports when he assumes office next week. This could mark the largest trade war between the two countries in decades.

Canadian Foreign Minister Melanie Joly warned in a press conference that such tariffs would lead to significant consequences for American consumers and jobs, describing them as a “Trump tariffs tax.” She pledged that Canada would respond strongly if the tariffs are enacted, stating that the nation has prepared various measures to counter any trade aggression.

Ottawa is reportedly considering higher tariffs on American goods, including steel products, ceramics, glassware, and orange juice, as an initial response. Outgoing Prime Minister Justin Trudeau reiterated Canada’s commitment to defending its interests against any unilateral actions by the U.S.

Economic analysts suggest that a trade war could have dire repercussions for Canada, potentially leading to a more than five percent drop in GDP, increased unemployment, and heightened inflation, underscoring the stakes involved in this brewing conflict.

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