Canada Retaliates as Trade Wars Escalate

SL: “Canada Retaliates as Trade Wars Escalate”
 SSL: “How will the Markets React”

Dear Reader,

Markets are on edge as the U.S.-Canada trade war officially kicks off. Overnight, President Trump’s 25% tariffs on Canadian goods took effect, and Canada wasted no time responding. Prime Minister Justin Trudeau announced immediate retaliatory tariffs of 25% on $155 billion worth of American goods, marking one of the most aggressive trade moves in years.

This is just the beginning. Canada has a second round of tariffs lined up, targeting another $125 billion in U.S. products after a 21-day review period. Meanwhile, Trump has hinted at even more tariffs, including a 25% duty on steel and aluminum set to begin on March 12.

A Trade War Spiraling Out of Control?

Tensions between the two allies have never been higher. Canada’s foreign minister called Trump’s tariffs “an existential threat”, while Ontario Premier Doug Ford went even further, threatening to cut off electricity exports to U.S. states like New York, Michigan, and Minnesota.

In a heated interview, Ford warned that if Trump wants to damage Canada’s economy, Ontario is ready to retaliate “twice as hard.” He even floated the possibility of banning U.S. alcohol imports and canceling government contracts with American companies.

Meanwhile, Trudeau defended Canada’s stance, arguing that Trump’s justification for tariffs, to stop illegal drugs and migrants, was an excuse to disrupt trade. He pointed out that less than 1% of fentanyl entering the U.S. comes from Canada and vowed that tariffs would remain in place until the U.S. reverses course.

What’s at Stake for the Markets?

The economic impact of this escalating trade war could be severe:

• Supply chain disruptions—Higher tariffs will raise costs for businesses on both sides of the border.

• Market volatility—Investors are bracing for a reaction as uncertainty rattles stocks and commodities.

• Energy instability—If Ontario follows through on its threat to cut power to U.S. states, energy markets could face unexpected shocks.

What Comes Next?

So how far will this go? Trump has made it clear there are “no more reprieves” for Canada, and trade negotiations appear to be at a standstill. Meanwhile, Trudeau has vowed that Canada will match every U.S. tariff with equal force.

Markets will be watching closely for:

• U.S. corporate reactions—Industries hit hardest by tariffs, including auto manufacturing and agriculture, could see stock declines.

• Retaliatory escalation—Will Canada move beyond tariffs and limit trade in other key sectors?

• Political fallout—With Trump already clashing with European leaders over tariffs, a global trade war is now a real risk.

For now, neither side is backing down. With billions at stake and major industries caught in the middle, this standoff could shape economic policy for years to come.

We’ll keep you posted.

Grand Crypto Insider