Trump’s Trade War with Canada Backfires ahead of Crucial Meeting with PM Mark Carney

By Evans Momodu, published 16:46

Canadian Prime Minister Mark Carney visits President Trump amid escalating trade tensions and retaliatory tariffs. Learn how Trump’s tariff war has impacted U.S. businesses and U.S.-Canada relations.

Canadian Prime Minister Mark Carney is set to meet U.S. President Donald Trump at the White House on Tuesday, marking what could be one of the most contentious encounters between the neighbouring nations in recent history. The meeting comes as Trump’s sweeping tariffs on Canadian imports have strained a decades-long trade partnership and led to growing backlash from both governments and businesses.

Canada, historically one of America's most reliable trade allies, has retaliated against Trump’s aggressive tariff measures, which many in Canada — and increasingly in the U.S. — view as economic overreach.

Carney, who recently led Canada’s Liberal Party to a federal election victory, struck a defiant tone in his post-election speech, declaring,

“We are over the shock of the American betrayal, but we should never forget the lessons.”

With his newly consolidated political power, Carney is expected to challenge Trump directly on the damaging economic impact of the ongoing tariff war.

The current trade crisis escalated in March 2025, when Trump imposed a 25% blanket tariff on goods from Mexico and Canada. Though briefly suspended, many tariffs remain — including those on cars, steel, aluminum, and auto parts — affecting billions in trade.

In response, Canada introduced tariffs on C$59.8 billion (about $44 billion USD) worth of U.S. imports, matching the 25% tariff and targeting key American sectors.

Impact on U.S. Businesses and Consumers

Trump’s tariff strategy is taking a toll across American industries:

• General Motors CEO Mary Barra stated the tariffs will cost GM $4 to $5 billion in 2025 alone.

• Busy Baby, a small business in Minnesota, reported its shipping costs have soared to $230,000 per container due to tariff-related supply chain shifts.

• The Federal Reserve’s Beige Book revealed that retailers and hospitality providers in border states are losing revenue due to a drop in Canadian tourists.

Shift in Consumer Behaviour

Canadians are increasingly choosing non-American products as a form of protest:

• Swapping Californian tomatoes for Italian ones

• Choosing Ontario-made meats over Ohio pepperoni

• Replacing Coca-Cola with Canadian maple-sweetened beverages

This boycott has not only hurt cross-border commerce but also amplified a growing sense of alienation.

“It’s an attack on Canada,” said Dylan Lobo, founder of the 'Made in Canada' directory, reflecting the national mood.

The upcoming Carney-Trump meeting will test whether the two countries can salvage their historically strong economic relationship or plunge further into protectionist hostility.

While Commerce Secretary Howard Lutnick acknowledged that a trade deal with Canada is “possible,” he also warned that negotiations would be “very complex.”

As both leaders prepare to face off, the world is watching closely — not just for economic outcomes, but for what the meeting signifies about the future of North American cooperation in a shifting global economy.
Source: CNN