Canada pushes back against US in tariff war

The world is reacting to US President Trump's decision to raise tariffs on countries around the world, justifying this by saying that America is losing out on foreign trade, especially with major industrialized countries such as China, Japan, the European Union, Mexico, Canada, and others.

The first confrontation Trump faces is from the Canadian Prime Minister, who called on the world to take his initiative in international cooperation with the free world and develop policies that promote open trade relations with the world, within the framework of the US President's decisions to raise tariffs on foreign exports.

Canada has the ability to confront the United States in the field of international trade cooperation, especially in the context of the latter's high tariffs on certain exports. It can work with global economic groups such as the BRICS, Asian groups, the European Union, and other economic blocs to strengthen their trade relations as part of its economic strategy.

It can also work to diversify its trading partners. With its significant potential, Canada can seek new trade opportunities with countries such as China, India, and the European Union to offset the negative effects of US tariffs. This can be achieved through trade alliances, where Canada can lead or participate in alliances such as the Trans-Pacific Partnership (CPTPP) to promote trade with non-US countries and achieve sustainability and reduce dependence on the US market. Canada can also expand its investment in innovation and technology, which will help it to increase the competitiveness of its products in the global market. This country can also actively participate in multilateral trade negotiations through international negotiations to support free trade rules and promote transparent trade policies. Overall, these steps can be part of a comprehensive strategy to strengthen Canada's position in global markets, despite the challenges posed by Trump's tariff policy.

Undoubtedly, the Canadian economy will be affected by US tariffs in the coming period, as the US is the largest trading partner with Canada. These tariffs will have an impact and increase the costs of goods and services, leading to higher prices for Canadian consumers and impacting the competitiveness of Canadian exports in the US market.

As for the potential losses for Canada, some studies have indicated that tariffs could lead to significant economic losses in certain sectors, such as the steel, aluminum industries and agriculture.

Canada has proposed several alternatives to address this dilemma. It has also proposed expanding its markets, opening new markets, and increasing exports to other countries within the framework of its trade agreements with Asian and European countries. This is in addition to easing domestic restrictions and improving the business environment within Canada to support affected industries.

Continued escalation of tariffs and their policies will require Canada to adapt dynamically to the new situation. It is worth noting that Canadian and European interests may converge against American interests regarding new US tariffs, as they share some economic and political interests, particularly when it comes to free trade and defending the multilateral trading system.

If the US imposes new tariffs that challenge Canadian or European Union interests, the two parties may cooperate to try to mitigate their impact. This could include taking joint measures, such as filing complaints with the World Trade Organization or conducting negotiations to mitigate the impact of tariffs. The two sides also share a common motivation to promote free trade as a means of strengthening the economy and reducing dependence on US markets. Therefore, cooperation in this area is a potential option.