"Canada has been ripping off the United States of America for years," wrote President Trump in his latest social media outburst, laying out his tariff torrent against Canada.
"Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries.
Not sustainable, and NOT ANYMORE!"
The US implemented a new 50% tax on imports of hundreds of Canadian items including furniture, plastics, plywood and electrical equipment on Saturday.
It’s such a high rate that it may cut off the world’s biggest market for some Canadian enterprises.
And now this morning, Trump unveiled more products will face dramatic tariff increases come the start of next year...
"On January First, 2027, Tariffs on all Cars, Trucks, both large and small. Automotive Parts, and Steel, will be increased to 50%.
Build in the U.S. and there are ZERO TARIFFS.
Canada will be treated like a State no longer!
On Trade, and in other ways, also, they are among the worst Nations in the World to deal with.
They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!
They do 95% of their business with the U.S., with us, the exact opposite!"
The Loonie was weaker ahead of Trump's tweet...
Carney’s government has pledged financial help for businesses caught in the crossfire. That may prove more complicated than previous aid packages for industries like steel that have been facing US tariffs for more than a year.
The new tariffs are “very diffuse, and they hit, in particular, small and many medium enterprises in various parts of the country and in radically different supply chains,” said Matthew Holmes, chief of public policy at the Canadian Chamber of Commerce.
“Very difficult for the federal government especially to create a package of supports for them.”
Canadians may have wanted their prime minister to stand tough and not sign a bad trade deal with the US; but the collapse of talks, and the escalation of the tariff war, will come at a price.