Ivy B-schools make Canada an ideal case study as world watches how USA's northern neighbour is fighting back Donald Trump's tariffs; here's what they have done

Canada retaliates against Trump's tariffs with $20.8 billion countermeasures as global leaders watch. Learn how steel/aluminum levies, EU responses, and volatile truces shape the US trade war's global impact.

ET Online
Global leaders are closely watching Canada’s fiery response to President Donald Trump’s tariffs as a blueprint for pushing back against U.S. trade policies. After Trump imposed steep levies on Canadian steel, aluminum, and other goods—citing border security and drug trafficking concerns—Canada retaliated with aggressive countermeasures. Ontario Premier Doug Ford introduced a 25 per cent surcharge on electricity exports to New York and neighboring states, sparking backlash from Trump. Meanwhile, incoming Prime Minister Mark Carney criticized the US as untrustworthy, vowing to maintain retaliatory tariffs until Washington shows respect.

Is the nature of the US-related trade volatile?

The tension peaked when Trump threatened to double metals tariffs to 50 per cent, only to backtrack hours later after Ford suspended the electricity tax. This temporary truce highlighted the volatile nature of the trade standoff. Canada’s broader retaliation included 25% tariffs on $20.8 billion worth of US goods, while the European Union targeted $28.3 billion in American products. However, allies like Japan and South Korea hesitated to follow suit, wary of escalating tensions.

Behind the scenes, Canadian officials had initially pursued diplomacy. Foreign Minister Mélanie Joly and Prime Minister Justin Trudeau made multiple trips to Trump’s Mar-a-Lago resort and Washington, aiming to avoid a trade war. Their efforts failed as Trump expanded tariffs, accusing Canada of lax border controls. The shift hardened Canadian public opinion, with citizens demanding leaders stand firm against US pressure.


The conflict has reshaped Canada’s political tone. Manitoba Premier Wab Kinew, who once advocated for friendly dialogue during a February visit to Washington, now reflects a nation disillusioned by Trump’s threats—including jokes about annexing Canada. With 42 million Canadians rallying against perceived bullying, the trade war has become a rallying cry for national pride, signaling to other nations that defiance, not appeasement, might be the only path forward.
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