Trump says he is cutting off trade talks with Canada

Canada's retaliation to Trump's tariffs puts a strain on their trading relationship

US President Donald Trump stated today that the United States would suspend trade negotiations with Canada, as retaliatory tariffs from Canada came into effect on Sunday. The tariffs, which enacted a 10% duty on American-made goods like bicycles, steel and steel products, and motor vehicles, were in response to the Trump administration's decision to impose tariffs on Canadian steel and aluminum.

Mr. Trump criticized Canada on Twitter, saying that America "will not negotiate with a gun to our head," and that Canadian Prime Minister Justin Trudeau was being "very dishonest."

What's Next?

The two nations are set to continue a strained relationship, as the US prepares to impose 25% tariffs on Canadian vehicles and auto parts tomorrow, which is expected to disrupt the automotive industry. Analysts predict that the tariffs will impact both economies negatively, with Canadians and Americans paying more for vehicles and domestic manufacturing becoming less competitive.