U.S. President Donald Trump threatened Canada with new tariffs if it retaliates against the tariffs imposed by the U.S. Trump stated that if Canada increases tariffs against the U.S., the reciprocal tariffs will also be increased by the same amount.

After imposing a 10% tariff on energy products like crude oil imported from Canada and a 25% tariff on other products, Trump warned Canada, saying, "Please inform Canadian Prime Minister Trudeau that when he applies a retaliatory tariff against the U.S., our reciprocal tariff will immediately increase by the same amount."

Canada's Response: Retaliatory Tariffs

In response to Trump's statements, Canadian Prime Minister Justin Trudeau announced that a 25% tariff would be applied immediately to goods worth $21 billion imported from the U.S. and to goods worth $106 billion within 21 days. Trudeau described Trump's tariff decision as "very foolish" and criticized U.S. policy.

Trade Wars Deepen: Tensions Rise Between Canada and the U.S.

The trade tensions between the U.S. and Canada have gained a new dimension, especially with the increase of tariffs. The retaliatory tariffs imposed by Canada could further complicate the economic relations between the two countries. During this process, both countries are threatening each other with new economic pressures.

Canada and the U.S. Trade Relations: Risks and Possible Outcomes

Prime Minister Trudeau's response with retaliatory tariffs is an indication of the reshaping of global trade. The trade policies of both countries could create regional economic impacts and lead to an escalation of global trade wars.