
AI-generated summary
The Trump administration has previously criticized Canada and China for imposing retaliatory tariffs. Last year, the United States and China began a chain of retaliation after reciprocal tariffs were imposed, leading to a situation where they imposed high tariffs of over 100% on each other.
[Washington Current Affairs] The trade dispute between the United States and Canada has further heated up. On the 8th, the Trump administration expanded the list of items subject to 50% tariffs and announced an import ban on Canada. Canada has also shown no intention of backing down, and the possibility of a trade war returning under the second Trump administration has become a reality.
Canada imposes retaliatory tariffs on US of up to 50%, escalating trade dispute
"We will take action against one of the few countries in the world that has taken retaliatory measures against the United States." A senior U.S. administration official emphasized this to reporters on the 8th. The U.S. administration has previously criticized Canada and China by name as countries that have taken retaliatory measures against the United States.
There are bitter memories of the relationship with China, where the reciprocal tariffs imposed after the inauguration of the second government last year led to a chain of retaliation, leading to a situation where both countries imposed high tariffs of over 100% on each other.
President Trump signed five proclamations that day to take retaliatory measures against Canada. The unusually large number of specific cases revealed an attitude of increasing coercion towards neighboring Canada.
Meanwhile, Canadian Prime Minister John Carney appealed to the people on the 8th, saying, ``The United States is trying to destroy us in order to control us, but we will never let that happen.'' He exposed his rivalry.
For the US administration, which will hold midterm elections in November, taking a tough stance against neighboring Canada's retaliatory measures can be expected to appeal to its support base to a certain extent. However, it is also true that raising the wall through tariffs and embargoes on Canadian products would lead to soaring prices in the United States, hurting consumers and businesses.
According to a public opinion poll released by research firm Ipsos on September 1, only 20% of Americans supported high tariffs on Canada, while 57%, nearly three times as many, opposed them. Furthermore, 68% of respondents said they would be willing to compromise with Canada.
The trade war with China resulted in high tariffs reducing trade on both sides, and ultimately ending the trade war with China. A senior U.S. official cautioned Canada, saying, "Even with China, we have reached certain agreements to minimize retaliation." However, Mr. Trump, who maintains his bullish stance, is prepared to continue crossing the precarious bridge of the trade war, regardless of the impact it will have on elections and other outcomes if it becomes a spark against him.
AI outlook — possibilities, not facts
Trade talks resume between the US and Canada, with adjustments aimed at easing some tariff measures.
Likely · Within weeks

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At the Tokyo foreign exchange market on the 8th, the yen appreciated against the dollar and at one point rose to the low 152 yen range. The yen has appreciated by more than 7 yen in one week, and speculators are increasingly selling the dollar and buying the yen as they speculate that the Bank of Japan will accelerate the pace of interest rate hikes.