Canada narrowly avoided Donald Trump’s global tariffs, avoiding the bullet of increased trade restrictions. However, other key industries that support the country’s economy are now poised to face levies. Although exempt from the tariff, Prime Minister Mark Carney warned that 25% tariffs on steel, aluminum, and automobiles would soon go into effect. Canada said it will “fight these measures with countermeasures,” and it had already placed a 25% tax on US goods in response to Trump’s tariffs. This has caused uncertainty and a chain reaction of tariffs and counter-tariffs, which will have a real economic impact. Truly, the tariffs are “like dodging a bullet into the path of a tank.” And although the relationship between the US and Canada isn’t a trade war, it is a major disruption to their bilateral relationship.

Source: https://www.theguardian.com/world/2025/apr/03/canada-trump-tariffs-exemption