Chrystia Freeland negotiated with Trump. Now she's watching a trade war unfold
Canada has imposed significant tariffs on U.S. goods in retaliation for American trade policies, escalating a tense economic dispute. Former Deputy Prime Minister Chrystia Freeland warns that Washington's aggressive stance risks alienating key allies and undermining collective efforts against global competitors like China.
Why it matters
The trade war threatens the long-standing economic and political alliance between the U.S. and Canada, impacting major industries like automotive manufacturing.
Canada's latest tariffs on American goods took effect Tuesday. It's another escalation in a trade war that is raising costs and testing a relationship that, until recently, was among the closest in the world.
Prime Minister Mark Carney's government imposed tariffs of up to 50% on about $20 billion worth of U.S. goods in response to U.S. tariffs on Canadian products. The latest measures match U.S. tariffs dollar for dollar, though not product for product.
But in Canada, the fight has become about more than tariffs. Many Canadians say they feel betrayed by a longtime ally. President Trump has repeatedly suggested Canada should become the 51st state and has said he would use economic pressure, rather than military force, to make that happen. Canadians have cut back on travel to the United States and boycotted American goods as tensions have grown.
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