Canada faces new 50% US tariffs, with job losses feared in some industries
GeopoliticsMacro Impact 4
Canada faces a new 50% tariff measure from the United States this week. President Trump has indicated plans to impose a new 50% tariff on a wide range of imports from Canada starting on the 19th, and Prime Minister Carney said on the 17th that he expects to speak with Trump before the tariff deadline. According to two people in the auto industry, auto tariffs on Canadian-made vehicles are a key sticking point in the negotiations. Because the new tariffs also apply to products eligible for preferences under the United States-Mexico-Canada Agreement, they shake the framework of an agreement that has shielded much of Canadian trade from tariffs and pose further risk to the Canadian economy. Trump last month refused a 16-year extension of the agreement and made it subject to an annual review, a process likely to prolong the trade uncertainty that has dampened investment and hiring in Canada. Canada's struggling lumber sector and its wine industry, already hit by wildfires raging in the west, could be severely hurt by the new tariffs.
