Donald Trump has escalated the ongoing trade war with Canada by threatening to impose a massive 250% tariff on certain Canadian goods, including dairy products. Speaking from the Oval Office, Trump accused Canada of “ripping us off for years” and claimed the U.S. was being treated unfairly under the United States-Mexico-Canada Agreement (USMCA). He pointed to Canada’s existing tariffs on U.S. dairy, which can reach as high as 241% when quotas are exceeded, as justification for his proposed retaliatory measures.
The dispute over dairy tariffs has been a longstanding issue between the two nations, with U.S. dairy farmers arguing that Canada’s protectionist policies put them at a disadvantage. Wisconsin Senator Tammy Baldwin criticized a recent USMCA panel ruling that upheld Canada’s right to impose these tariffs, calling it an unfair blow to American farmers. Trump now says he will match Canada’s tariffs dollar-for-dollar, with the possibility of action as early as next week.
Canada’s trade minister, Mary Ng, pushed back against Trump’s claims, calling them “completely unjustified” and emphasizing that Canada is simply protecting its domestic industry. She expressed concern that such drastic tariffs could further strain relations between the two countries and disrupt supply chains. Some analysts warn that escalating trade tensions could lead to price hikes for consumers on both sides of the border.
As Trump continues to push aggressive trade policies, the standoff with Canada highlights the broader tensions in his economic strategy. Whether Canada will retaliate or attempt to negotiate remains to be seen, but with both sides refusing to back down, the trade war appears far from over.
