A sharp escalation in trade tensions looms as the U.S. threatens to impose additional tariffs on Canada’s auto sector, a move that could disrupt deeply interconnected manufacturing supply chains between the two countries. Analysts question the rationale behind the latest threats, which come after recent tariff increases, raising concerns about broader economic fallout. The auto industry’s cross-border production—where components and vehicles frequently cross the border—makes it particularly vulnerable to retaliatory measures. With no clear justification offered, businesses and policymakers brace for potential disruptions to one of North America’s most vital trade relationships.
LONDON, Ontario — President Donald Trump seems dead set on escalating his trade war with Canada. And no one is really sure why. On Monday, Trump threatened another round of 50 percent tariffs on top of the ones he just implemented — this one targeting Canada’s auto industry, which is so deeply integrated with its American counterpart […]