Canada’s top three products that may no longer be exported to the U.S.

Trade relations between Canada and the United States have entered a phase of uncertainty with the recent return to power of and his threatened tariff measuresDonald Trump.

Although threats to impose a 25% tariff on Canadian products were averted at the eleventh hour, the province of Ontario did ordered LCBO (Liquor Control Board of Ontario) shops to stop selling alcoholic beverages from the US. This measure has affected wines, beers and spirits, which represent annual sales of approximately one billion Canadian dollars in the province.

British Columbia decided to implement a more selective measure, withdrawing from its shelves beverages produced in American states controlled by Trump’s Republican Party. These decisions have provoked a chain reaction, with other provinces such as Nova Scotia, Quebec, Newfoundland and Labrador joining in the withdrawal of US products, reflecting a unified stance against the new president’s threatened measures.

President Donald Trump justified the initial tariffs as a measure to protect Americans from illegal immigration and drug trafficking, relying on the International Emergency Economic Powers Act (IEEPA), which allows the president to expand his protectionist measures without prior investigation.

Canada responds

Canada has called Washington’s decision ‘trade aggression’ and Prime Minister Justin Trudeau initially announced that Canada will also apply 25% tariffs on certain imports from the United States, which has key consequences in strategic sectors such as energy, oil and food, and intensifies the trade dispute between the two countries.

In fact, Canada have already warned that it could suspend electricity supplies to several US states if these protectionist policies continue, which could particularly affect areas such as Michigan, New York and Minnesota.

These measures reflect the deteriorating trade relations between the neighbouring countries, which will have a direct impact on consumers and traders on both sides of the border.

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