The Guardian reports:

Mark Carney, the favourite to replace Justin Trudeau as the Canadian prime minister, has vowed that his country is “going to stand up to a bully” after Donald Trump imposed 25% tariffs on goods coming in from Canada.

There are now 25% tariffs on goods coming into the US from Canada and Mexico, while China is being hit with tariffs of 10% on imported goods, leading some economists to fear the outbreak of a full-on, tit-for-tat trade war.

Trump has also threatened to follow up with a further wave of tariffs against the European Union.

The former governor of the Bank of England told BBC’s Newsnight there would be repercussions after the introduction of tariffs.

“President Trump probably thinks Canada will cave in,” he said. “But we are going to stand up to a bully, we’re not going to back down. We’re united and we will retaliate.”

Justin Trudeau on Friday said Canadians could be “facing difficult times in the coming days and weeks” after the US president insisted he would impose the hefty new tariffs on goods coming across the northern border. The Mexican president, Claudia Sheinbaum, has also threatened retaliation, but said she would “wait with a cool head” for Trump’s tariff decision and was prepared to continue a border dialogue with him.

China has been more circumspect about its retaliation plans, but has vowed to respond to defend its trade interests. [Continue reading…]

Business Today reports:

The tariff standoff between the US and Canada is heating up, and Tesla finds itself squarely in the crosshairs. Chrystia Freeland, Canada’s former finance minister and current Liberal Party leadership contender, has proposed a bold countermeasure: slapping 100% tariffs on select American goods, including Teslas, in direct response to President Trump’s threatened tariffs on Canadian and Mexican imports.

In an interview with The Canadian Press, Freeland made her intentions clear. “We need to be very targeted, very surgical, very precise,” she said. The strategy isn’t just about economic retaliation — it’s personal. Tesla’s inclusion stems from CEO Elon Musk’s financial and operational backing of Trump, which Freeland didn’t shy away from addressing. “We need to look through and say who is supporting Trump and how can we make them pay a price for a tariff attack on Canada.”

Tesla’s electric vehicles sold in Canada are primarily manufactured in the US and China. Imposing tariffs would inevitably hike their prices, potentially steering Canadian EV buyers toward other automakers. This could be a significant blow to Tesla, which dominates Canada’s EV market with its Model Y and Model 3 leading in sales. [Continue reading…]