After suffering a severe blow from the tariff announcement by United States (US) President Donald Trump, Canada is now retaliating by imposing a 25% tax on cars imported from the US.
The tariff, which took effect on April 9, is a loud siren of Canadian opposition to the US.
This retaliatory tax will be imposed on cars that do not comply with the United States-Mexico-Canada Agreement (USMCA), while those that comply with the trade agreement will be subject to lower taxes on components from the US.
Canadian Finance Minister François-Philippe Champagne stressed that Canada will not tolerate the US tax, which he described as “unjustified”.
Another problem that arises if the two refuse to give in, this could lead to higher prices for consumers on both sides of the border.
Will this trade war escalate further, or can rationality overcome emotion in the interests of the people?
