US tariffs on Canadian goods may rise as Trump blames Canada for cross-border wildfire smoke affecting American air quality.
President Donald Trump announced plans to impose additional tariffs on Canada, citing inadequate wildfire management as smoke drifts into the US. The move targets Canadian imports amid growing environmental and trade tensions between the two nations.
Trump’s threat follows recent disputes over trade policies and environmental regulations. Earlier this year, tariffs on Canadian lumber and steel were a point of contention, though no new measures were enacted. Wildfires in Canada have intensified this season, raising concerns about air quality in northern US states.
Markets showed muted reaction, with the Canadian dollar (CAD) and related ETFs (EWC) experiencing slight volatility. Analysts suggest the impact may depend on whether the tariffs materialize or remain a political statement.