U.S. President Donald Trump's administration is considering additional trade sanctions, including tariffs, against Canada in response to Prime Minister Mark Carney's retaliatory tariffs, Bloomberg reported on August 25, citing a White House official. The trade conflict, which had been quiet for a time following the breakdown of negotiations between the two countries, is escalating into a full-blown confrontation.
According to the report, the Trump administration is discussing various measures to respond to Canada's recent actions, including the possibility of imposing additional tariffs. The White House official stated that President Trump has a wide range of tools at his disposal for this trade dispute and that a response to Canada's retaliatory tariffs is forthcoming.
The conflict between the U.S. and Canada intensified on August 22 when the U.S. imposed a 50% tariff on approximately $20 billion worth of Canadian products. This action was based on Section 338 of the Tariff Act of 1930, marking the first time this provision has been used to impose tariffs.
In strong retaliation, President Trump announced the day before that he would raise tariffs on Canadian automobiles from 25% to 50% and impose tariffs on auto parts as well. These measures are set to take effect on January 1, 2027.
Canada has also launched its counteroffensive. On August 25, the Canadian government announced it would increase retaliatory tariffs on U.S. steel and aluminum products from 25% to 50% and impose a 50% tariff on U.S. dairy, furniture, clothing, as well as electronic products like video game consoles and smartphones. The annual import value of the targeted U.S. products is about $20 billion, nearly matching the value of the Canadian products subjected to U.S. tariffs on August 22. This amount represents approximately 6% of U.S. exports to Canada last year. Canada's retaliatory tariffs will take effect on September 8.
This marks a significant shift in Prime Minister Carney's previous trade policy direction with the U.S., according to Bloomberg. When President Trump imposed tariffs on Canada last year, then-Prime Minister Justin Trudeau immediately retaliated with tariffs on a wide range of U.S. products. However, Carney had previously withdrawn some retaliatory tariffs and made concessions, such as eliminating the digital services tax, in an effort to improve relations. Following the recent breakdown in negotiations and the Trump administration's renewed tariff offensive, Carney's government has adopted a tougher stance.
Notably, Canada's new retaliatory tariffs are expected to target politically sensitive regions in the U.S. Bloomberg's analysis suggests that the new tariffs will impact the largest categories of U.S. products exported to Canada from states like Ohio, Illinois, Pennsylvania, Michigan, and California. This could pose a challenge for President Trump and the Republican Party ahead of the November midterm elections.
Meanwhile, Ontario Premier Doug Ford, caught in the middle of the U.S.-Canada conflict, has urged for negotiations between the two leaders while refraining from escalating tensions with President Trump. In an interview with Bloomberg TV, Ford expressed support for Carney's trade policy but stated, "It would be more productive for the Prime Minister and the President to meet directly and reach a fair agreement for everyone."
* This article has been translated by AI.
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