The trade tension between the US and Canada is escalating, with Ontario Premier Doug Ford saying that Canada is willing to remove tariffs on US goods if the US does the same.
This comes as the US is set to announce a new wave of reciprocal import taxes on various nations, including Canada, as part of its efforts to balance trade.
What’s Behind the Tariff War?
US President Donald Trump has been championing April 2nd as “Liberation Day”, a day when the US will institute a range of new tariffs on countries that it believes are not playing fair on trade.
Canada, along with other North American allies, has been targeted by the US, with Trump imposing tariffs on the country in recent weeks.
Canada’s Response: Retaliation or Removal of Tariffs?
Initially, Canada had threatened to retaliate with $65 billion in tariffs of its own, with Premier Ford saying that the country would “retaliate appropriately, but hard as well”.
However, in a surprise move, Ford has now said that Canada is willing to remove its tariffs on US goods if the US agrees to do the same. “The only acceptable thing is zero tariffs,” Ford said in an interview with NBC’s Meet the Press.
A Global Response to US Tariffs
Canada is not the only country responding to the US tariff threat. Nations like Israel and India have already removed their tariffs ahead of the US announcement, in a bid to avoid a trade war.
As the US prepares to announce its new tariffs, the world is watching to see how the situation will unfold.
What’s Next?
With the US set to announce its new tariffs today, the fate of trade relations between the US and Canada hangs in the balance.
Will the US agree to remove its tariffs, or will Canada follow through on its threat of retaliation? One thing is certain – the next few days will be crucial in determining the future of trade between these two nations.