Canada has been under considerable threat from global trade tariffs. With more traditional methods of negotiation seemingly dismissed, the newly elected government under Prime Minister Mark Carney has been left perplexed.
American tariffs have been impacting Canada’s economy since Feb. 1 when President Donald Trump announced a “25 per cent tariff on all products except energy, critical minerals and potash” as CBC reports.
Since then, the justification behind the tariff war between Canada and the United States has been obscured. Originally, the President said that the tariffs were in response to the deadly drug fentanyl being smuggled across Canadian borders into U.S. cities, in an attempt to incentivize Canada to have tighter border control.
The claim that Canadian borders were bringing significant amounts of fentanyl into the U.S. has since been disproved. Fentanyl entering the U.S. comes from Mexico at significantly higher rates: 21,000 pounds in 2024 versus 43 pounds from Canada in the same timeframe.
The President then called for Canada to become the U.S.’s 51st state over the tariffs, which resulted in swift consumer backlash. This led Canadians to boycott American products, alcohol and vacations, successfully causing some damage to sectors in the U.S. economy.
During this time, the Canadian federal election occurred. The tariffs and Trumps’ 51st state threats coupled with his “Governor Trudeau” taunts had a major effect on the outcome of the election, with the once trailing Liberal party being re-elected under the new leadership of Prime Minister Mark Carney.
Mark Carney, an experienced economist well versed in the world of politics, was selected by Canadians to handle the economic turmoil caused by the tariffs.
Since the election, the U.S. has embarked on a global tariff campaign against nearly every country, including the solely penguin inhabited Heard and McDonald Islands.
Due to the intensity of the tariffs, some nations have resorted to gifting the President personal itemsin exchange for tariff exemption, like Vietnam investing $1.5 billion in Trump’s golf resort.
In essence, Trump’s tariff announcements have been unpredictable and difficult to respond to for many nations, with some accusing the President of market manipulation due to the frequency with which tariffs are changing.
As it stands, Canada has been taking an industry support approach with both the federal and provincial governments announcing tariff relief packages in the billions for affected industries.
To further the tariff issues, China introduced an additional 75.8 per cent tariff on Canadian Canola, a major export, to an already existing 100 per cent tariff.
In discussions between Beijing and Ottawa, considerations for actions such as removing Canada’s 100 per cent Chinese E.V. tariff have been floated, though it would jeopardize vehicle manufacturing in Canada.
Much of Canada’s retaliatory tariffs on the U.S. have been dropped, though the uncertainty and woes continue.
The Prime Minister’s focus currently remains on the total restructuring of Canada’s long-term economic plans, with notable headlines being the passing of major projects, cutting back on the E.V. mandate and a worker reskilling package.
Additional projects include a new buy Canadian policy that is set to refocus taxpayer money towards products made in Canada opposed to foreign alternatives.
Canada continues to navigate a rapidly restructuring and increasingly unpredictable global market.