President Donald Trump has imposed a 25% tariff on virtually all Canadian goods and 10% on Canadian energy products, sparking a trade war with a key ally. These tariffs, set to take effect Tuesday, are framed as a response to a “national emergency” related to drug and migration issues, despite data showing minimal fentanyl and illegal migration from Canada.

The move threatens billions in trade and could lead to a recession in Canada. Prime Minister Justin Trudeau is preparing retaliatory measures, including potential tariffs and energy supply restrictions. Industry leaders warn of severe impacts on jobs, trade, and prices for goods in both countries, with risks to U.S. energy supplies, agriculture, and home construction costs.

Ontario’s Doug Ford and labor leaders are urging strong Canadian retaliation, while public sentiment has united against what is seen as an unjust act by the U.S. government. The tariffs mark a significant escalation in Trump’s push to reshape U.S. trade relationships, ignoring trade data that suggests the U.S. already benefits from its trade with Canada.