Canada is influencing for the president Donald Trump’s The trade war escalates, with economists warning of grocery prices, major unemployment and even potential recession if threats U.S. tariffs take effect.
The United States is Canada’s largest trading partner, accounting for nearly two-thirds of Canadian imports and obtains more than 70% of its exports. But under Trump’s new “liberation day” tariffs (25% of Canadian goods and 10% on energy), Ottawa is now facing an economic attitude that could span major provinces, industries and their national campaigns.
Trump has repeatedly criticized his so-called “unfair” trade practices, citing the imbalance between Canada and the United States in order to justify broad tariffs.
“This is the beginning of American Liberation Day,” Trump said last week. “We will accuse the state of doing business in our country, doing our work, seizing our wealth, adopting a lot of things that have been spent over the years. They have left our country, friends and enemies. And, frankly, friends are often much worse than enemies.”
Trump will focus on tariffs in the 11th week of office as president touts ‘liberation day’
Canadians protested U.S. tariffs and other policies in Toronto on March 22, 2025. (Reuters/Carlos Osorio)
Raising tariffs could mean Americans will see higher price tags on fertilizers and oil (petroleum) Vehicles and machineryIn theory, plastic and wood products will prevent consumers from buying these products and cause economic losses in Canada.
Similarly, Canada imposed reciprocal tariffs on US $30 billion worth of US goods in mid-March, which means that Canadians will not only feel the loss in the macro range, but also involves such surges in grocery prices in grocery stores, which will also directly feel the loss. Leafy vegetables, citrus, orange juicebeef, pork and fish.
Ottawa has not announced any tariffs on U.S. imported vehicles, due to concerns about how to further hinder the Canadian economy. It reportedly has about $95 billion in U.S. goods, although it is considering tariffs, according to a Trump announcement on April 2. Canadian Export Finance Jobs.
“They are in the election,” Andrew Hale, senior policy analyst for trade policy with Heritage Foundation, told Fox News Digital. “I think it’s hard for them to negotiate and take these measures in election events.
“Everything they do now will bear the weight of the election,” he added. Canadian politicians A cautious balance will need to be reached: Trump is tough enough to attract voters, but measured enough to provide room for future tariffs.
“If they were to bear reciprocity tariffs, it would hurt Canadian standards of living and have an impact – because all of this has already made an impact in Canada -” Hale said
Canadians claim they are canceling the rest of Trump’s term to travel to our trip
Canadian Liberal Party leader Mark Carney spoke to supporters at a rally in Montreal on March 27, 2025. The federal election was called and Canadian voters took the poll on April 28. (Andrej Ivanov/Getty Images)
Trump believes his tariffs protect U.S. manufacturing, especially the automotive industry, but the impact may be much more serious for Canada. Immigration Minister Marc Miller warned that up to one million Canadian jobs are at risk.
“Most Canadians live within 100 miles of the U.S.-Canadian border, so they are obviously seriously affected,” Hale said. “Most Americans don’t.”
Hale pointed out that while tariffs will affect the entire United States, the most difficult regions will be industries closely related to Canadian imports, such as agriculture. For example, the United States obtains 90% of potassium fertilizer from Canada.
“This will have a disproportionate impact on border countries, but he added that Canada’s economic pressures will be greater in the region like Ontario.
Canadian leaders have expressed concerns that Quebec could lose up to 160,000 jobs 500,000 jobs in Ontarioaccording to how long the tariff dispute lasts.
Both Quebec and Ontario have two provinces that are expected to be hit hardest in Canada as they rely heavily on steel, aluminum, wood and forestry sectors for export.
A worker loaded wood on Ladysmith Log, western forest product in Ladysmith, British Columbia, Canada on February 18, 2025. (James MacDonald/Bloomberg via Getty Images)
If Canada cannot control Trump’s tariff offensive, it may face a recession this year. Oxford economist The first warning was made in a report last November.
Before the tariff war between trading partners during Trump’s first administration, billions of dollars were caused to Americans and their foreign counterparts.
But Trump’s impact on the United States is not as severely affected as a country like Canada.
The full impact of the tariff war with Canada remains uncertain as Washington also imposes huge tariffs on the EU, China and Mexico. Trump has pledged to target the “Dirty 15,” the country he accused of making the biggest contribution to the U.S. trade deficit.
Cambodia, India, Indonesia, Japan, Malaysia, South Africa, South Korea, Switzerland, Taiwan, Thailand and Vietnam will be the next target of Trump’s April 2 tariff announcement, which he calls “liberation day.”
Hale said that prior to the April 2 deadline, details of Trump’s tariff war with Canada and dozens of other countries remain unknown.
“Last week’s Bureau of Economic Analysis report showed that PC inflation was 2.8% ongoing high core personal consumption expenditure. Therefore, inflation may argue that it will not fall, and price levels will certainly continue to rise,” he said. “In both Canada and the United States, consumer spending has slowed significantly.”
President Donald Trump made a statement after signing the executive order on reciprocity tariffs in the Oval Office on February 13, 2025. (Andrew Harnik/Getty Images)
Click here to get the Fox News app
He added: “Businesses want certainty. They cannot make future investment decisions in this climate.
“What I know is that businesses and banks are people who invest in projects and hope to be able to plan,” Hale said. “Hopefully we have a clear idea.” [on Tuesday] It all goes down and we can work with it. ”
