How well is Canada weathering Trump’s tariff war?

Canada is already feeling more of the pressure from the latest trade fight with the United States from its dollar after Trump started yet another economic spat.

At press time, the loonie was down 0.58% against the U.S. dollar. It also lost ground against the euro, British pound and Japanese yen.

Cryptopolitan reported that Washington imposed a 50% tariff on about $20 billion of Canadian goods on Saturday. But Canada is America’s second-largest trading partner after Mexico, so the dispute reaches far beyond a few narrow industries.

Canada’s Prime Minister Mark Carney has already promised that he will introduce his own tariffs on September 8.

As we reported, Carney said Ottawa would retaliate “dollar for dollar” and release the complete list “in the coming days.” The government has also suggested that fiscal support could be used to help businesses hit by the conflict. Carney has been clear about the cost, though. He said the new duties would “raise costs and reduce choice for Canadians.”

The political reaction inside Canada has been more supportive than the economic numbers might suggest. Recent polling shows a majority of Canadians back taking a tougher position against Washington. At the same time, more people are becoming worried about their jobs. Canadian economist Trevor Tombe estimates that keeping U.S. tariffs at 50% could lead to roughly 90,000 job losses.

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