President Donald Trump announced a sweeping 50% tariff on all Canadian goods entering the United States, escalating a trade dispute that has rattled financial markets and sent the Canadian dollar to its lowest level in over a decade. The White House cited Canada's refusal to meet US demands on dairy market access and lumber subsidies as justification.
Canadian Prime Minister Mark Carney vowed immediate retaliation, announcing a matching 50% tariff on $60 billion worth of American exports including automobiles, agricultural products, and industrial equipment. The two countries have been locked in increasingly hostile trade negotiations since March.
Economists warned the tariffs could add $3,200 annually to the average American household's expenses and raise the price of new cars by $8,000. Stock markets fell sharply on the news, with the Dow Jones Industrial Average dropping 600 points.
