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The fact that America and Canada’s relationship has turned even more tumultuous was quite evident with Donald Trump’s announcement of new tariff rates and how it could affect Canada. Trump also repeatedly hinted at making Canada the 51st state of America, which naturally did not sit well with the Canadian administration.
Shortly after he became the president, Trump had levied a 25% tariff on Canadian goods. Canada retaliated back by announcing the imposing of taxes worth $20.7 billion USD. However, that did not stop Trump from going ahead with his proposed tariff rates on March 4 and only 10% tax was levied on Canadian energy.
Trump, however, mentioned that on April 2, 60 other countries would be charged reciprocal tariffs and when that list was announced, the names of Canada and Mexico were not there. Post the announcement of the tariff rates, the market witnessed a huge crash and as complete chaos broke, Trump announced a 90-day pause on some of the higher rates of certain countries though nothing particularly changed for Canada.
