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U.S.-Canada trade war escalates as Canada unveils retaliatory tariffs

financeAug 28, 202623633

Canada has announced retaliatory tariffs matching new U.S. measures after Washington imposed fresh duties, with Finance Minister François-Philippe Champagne promising to match American tariffs "dollar for dollar, and rate for rate." Economists and strategists warn the tariff escalation could permanently alter cross-border trade. Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, said Canadian companies are already seeking other markets and building logistics so those new relationships may be difficult to unwind. Drew Fagan of the University of Toronto’s Munk School said the change is lasting because it reflects a more protectionist, nationalist United States and a shift in Canadian business mentality. Sectors such as paper products are among the hardest hit, with estimates of 25 to 50 percent tariffs raising prices and straining supply chains. Analysts say the longer the dispute continues, the more Canadian firms will reorient supply networks and investment away from the U.S., which could reduce overall bilateral trade volumes over the coming years.

Scott MacFarlane
@macfarlanenews.bsky.social

NEW: Mayor of Brampton, Ontario warns of a "permanent structural break" in the Canadian-U.S. relationship because of Trump's trade war "Permanent" =======>

2562h ago
David Henig
@davidheniguk.bsky.social

"Trump has now spent a year and a half throwing rocks into the rivers of world commerce, only to find trade flowing over and around them" The @alanbeattie.bsky.social lesson is applicable to Trump but also Democrats and the EU who think they can design better rocks... www.ft.com/content/e5fe...

655h ago
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