Trump threatens new tariffs on Canada, including 250% tax on dairy

A day after offering Canada a one-month reprieve on punishing, virtually across-the-board 25% tariffs, President Donald Trump threatened to impose new tariffs as soon as Friday. The focus is on Canadian lumber and dairy products, two significant sectors in Canadian exports to the U.S.

Trump’s latest move is part of an inconsistent trade policy that has created uncertainty in markets. The President, citing Canada’s approximately 250% tariff on U.S. dairy imports, has proposed matching those tariffs dollar-for-dollar.

In response, Canadian Trade Minister Mary Ng dismissed Trump's accusations, stating the proposed tariffs are "completely unjustified." The economic implications of such tariffs are concerning, with experts warning of potential price increases for U.S. shoppers.

Markets initially reacted with volatility to Trump’s announcement, but steadied after Federal Reserve Chair Jerome Powell’s positive economic outlook. The day’s trading ended with gains across major indices, yet uncertainty looms over the potential economic impacts and the ongoing trade tension with Canada.