US Tightens Tariffs and Canada Promises Trade Retaliation

• US Postpones Negotiations with Canada.
• Trump Doubles Steel Tariffs.
• Carney Promises Significant Response.

The United States has made it clear that it will not negotiate tariffs with Canada until Mark Carney officially becomes Prime Minister.

US Secretary of Commerce, Howard Lutnick, stated in an interview with Fox Business that discussions would be postponed until the leadership transition in Canada.

«We are going to create an understanding, make sure we know each other, and then we are going to negotiate with all of Canada, so obviously we are going to wait for their new Prime Minister and then we will talk,» said Lutnick.

The statements come at a time of increasing trade tension between the two countries.

Trade Tension: Ford Travels to the US After Trump’s Tariffs

Doug Ford, the leader of Ontario, will travel to Washington to meet with Lutnick and try to reduce the friction caused by Donald Trump’s customs taxes.

Trump threatened to double the tariffs on Canadian steel and aluminum from 25% to 50% in retaliation for a decision by Ontario.

Ontario had increased the price of electricity supplied to the United States by 25%, which triggered Washington’s reaction.

The Canadian province temporarily suspended the electricity tariff increase, but the United States maintained the 25% tariffs on steel and aluminum.

Since his return to the White House, Trump has used tariffs as a pressure measure on Canada, Mexico, and China, linking them to the fentanyl crisis in the United States.

Canada’s future Prime Minister, Mark Carney, responded with a firm stance against Trump’s measures.

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«My government will ensure that our response has a maximum impact on the United States and a minimal impact here in Canada, while supporting affected workers,» declared Carney.

He added: «My government will maintain our tariffs until the Americans show us respect and make credible and reliable commitments to free and fair trade.»

Carney described Trump’s tariffs as «an attack on workers, families, and Canadian businesses.»

Canadian government sources warned that if Washington continues to escalate tariffs, Canada will respond accordingly.

«As we have shown, of course, we will have to respond to the tariffs if they proceed,» said a governmental source to AFP.

The escalation of tensions led Trump to suggest that Canada should become the «51st state» of the United States.

«This would make all tariffs, and everything else, completely disappear,» he stated on his platform Truth Social.

Trump’s threats include a 25% tariff on Canadian car imports, a measure that could devastate the country’s manufacturing industry.

Doug Ford, the Premier of Ontario, strongly rejected Trump’s statements.

«Canada is not for sale,» he asserted on CNBC.

Economic Impact and Calls to End the Trade War

«The only solution is to abandon this trade war because that will strengthen both countries,» added Ford.

Canada supplies 50% of the aluminum and 20% of the steel imported by the US, according to consultancy EY-Parthenon.

The trade dispute could have significant economic impacts for both countries and exacerbate the crisis in Canada’s automotive sector.

Trump argues that his tariffs are intended to counter what he calls «atrocious Canadian tariffs» imposed on electricity exports.

The Republican has intensified his rhetoric, warning that if these tariffs are not eliminated, he will impose additional tariffs starting April 2.

Trump’s pressure on Canada occurs in a context of growing political uncertainty for the neighboring country.

Carney was elected leader of the Liberal Party and will assume the office of Prime Minister in the coming days, amidst a potential call for early general elections.

The trade relationship between the United States and Canada faces its most tense moment in years, as both governments maintain firm stances in the tariff dispute.

SOURCE: EFE / AP / INFOBAE

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