Canada Responds to Trump's New Tariffs

• Canada has raised tariffs on American goods by up to 35%
• The Prime Minister promises countermeasures to protect the economy
• Canadian companies are beginning to diversify their suppliers

After the conclusion of the self-imposed deadline for the new trade agreement between the USA and Canada, the situation remains tense. On July 31, 2025, US President Donald Trump signed an order that increased tariffs on Canadian goods from 25% to 35%. This decision particularly targets key sectors of the Canadian economy, including forestry, steel, and automotive manufacturing.

Canadian Prime Minister Mark Carney expressed deep concern over the new tariffs, but reaffirmed the commitment to the CUSMA agreement, which is the second largest trade agreement in the world by trade volume. He emphasized that the government is taking decisive measures to protect jobs and support domestic producers.

Negotiations have already been ongoing for six months in a state of tariff war. Despite "intensive" negotiations in recent weeks, reaching an agreement so far has been elusive. Canada's position is complicated, as Trump is also leveraging tariffs for other issues with Canada, including military expenditures.

Canada has already imposed countermeasures in the form of tariffs on various American goods, which amount to approximately 60 billion Canadian dollars. This makes Canada one of the few countries that responded to Trump's actions.

Research shows that Canadian companies have already started to diversify their supply chains beyond the USA, indicating preparation for possible prolonged negotiations.

Tags: USA/Economy