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The Economic Times
The Economic Times
Comment
Arnie Guha

Canada’s trade war is forcing a rethink of who its friends are

Toronto: The Canadian idea of citizenship rests on its promise to contribute to a shared set of societal values. That promise has been mostly tested at the border: whom do we let in? On what terms? But this year, it's being tested in a different theatre altogether. Canada is now in a trade war with the one country it has trusted so completely, for so long, that it rarely had to ask what that trust was worth.

The trade war between Canada and the US began in Feb 2025. It has since escalated sharply. Talks collapsed last week after Washington introduced demands Ottawa considered economically damaging and incompatible with its sovereignty. Last Saturday, Donald Trump announced 50% tariffs on C$27.6 bn (about US$19.9 bn) of Canadian goods, including products that comply with the existing continental trade agreement. On Tuesday, PM Mark Carney announced counter-tariffs of equivalent value. Asked whether this amounted to a trade war, Carney was blunt: 'You are at war when you are attacked. We were attacked.'

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