The escalation follows a failed attempt to link the Keystone Pipeline extension to US alcohol sales, prompting Prime Minister Mark Carney to prepare retaliatory levies.
Prime Minister Mark Carney announced dollar-for-dollar retaliatory duties following the collapse of trade negotiations and the implementation of an unprecedented US import tax.
US stock futures are rising as a semiconductor-led tech rally offsets concerns over new Canadian tariffs and geopolitical tensions. Investors are now focusing on corporate earnings and Federal Reserve policy signals.
President Trump has invoked Section 338 to impose 50% tariffs on a wide array of Canadian goods, citing discriminatory treatment of U.S. products.
President Trump is threatening to increase tariffs on Canadian goods, citing the country's handling of hundreds of wildfires currently polluting U.S. air. The move has triggered significant diplomatic tension and legislative threats from U.S. lawmakers.