US-Canada Trade War / Trump, who used to talk big, got scared of Canada! Took a U-turn on tariff

US-Canada Trade War: Recently, the trade war between the US and Canada has taken a new direction. Despite US President Donald Trump's plan to increase tariffs, the US has had to step back in front of Canada. This trade tension reflects the economic instability and trade uncertainty between the two countries.

Tariff dispute and US U-turn

The US had planned to double the tariff on steel and aluminum imported from Canada to 50%. However, White House senior economic adviser Peter Navarro clarified in an interview to CNBC that these increased tariffs would not be implemented for the time being.

Before this announcement, Doug Ford, Prime Minister of Ontario province of Canada, had announced the temporary suspension of the surcharge imposed on US electricity exports. This gave a clear indication that Canada is not in the mood to escalate this trade war, but if the US continues the tariffs, it would also have to bear the brunt of it.

Canada's tough stance and criticism of Mark Carney

Canada's new Prime Minister Mark Carney has taken a tough stand against the US. He clearly stated that the unfair tariffs imposed by the US are trying to harm the Canadian economy. He also said that Trump's policies are attacking Canadian families, workers and businesses and they will not let it succeed.

Impact on the US market

The tariffs imposed by the Trump administration are proving to be harmful not only for Canada but also for the US economy. Both China and Canada have imposed retaliatory tariffs, which has led to a decline in the US market. Economic analysts believe that if this trade war continues for a long time, it will also affect American consumers and traders.

Way forward

The future of this trade war is still uncertain. Although the US has stepped back from imposing tariffs for the time being, tensions between the two countries still persist. Experts believe that if this tension continues, it could have a negative impact on the economies of both countries. In such a situation, it will be interesting to see what steps the US and Canada take to improve their trade relations in the coming times.