Trade tensions between the US and Canada escalate as President Trump threatens a 35% tariff on Canadian goods. This move jeopardizes the USMCA and could have significant economic repercussions for both nations.

A staffer works in a steel company that makes high-end automotive spring steel in Ma'anshan, East China's Anhui Province on June 24, 2025. Chinese companies are advancing their efforts in new quality productive forces, a new development paradigm, to improve total factor productivity. Photo: VCG

British Columbia Premier, David Eby stated that Canada may consider limiting its softwood lumber shipments to the United States.

The U.S. dollar rose against major currencies including the yen and euro as President Donald Trump rekindled trade tensions with new tariffs on Canada and other trading partners.

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney have agreed to bolster trade collaboration as U.S. tariffs loom. The leaders plan to uphold the U.S.-Canada-Mexico trade agreement and strategize negotiations with the Trump administration.

Trump renewed criticism of Canada's "tremendously high" dairy tariffs, escalating trade tensions. Canada’s decision to scrap a digital service tax on US tech companies this week was aimed at safeguarding trade discussions with President Donald Trump.

Gearing Up for Trade Tensions As President-elect Donald Trump’s inauguration nears, Canada is preparing for potential trade challenges following Trump’s threat of a 25% tariff on Canadian imports.

The dollar index (DXY00 ) Friday rose by +0.22%. Positive trade news is bullish for the dollar as the US moves closer to trade deals with China and other trading partners. The dollar also found ...