Canadian Prime Minister Mark Carney has stated that the government is evaluating "all options" following a fresh threat from US President Donald Trump to impose 50% tariffs on a range of Canadian goods.
The proposed duties target specific sectors, including wine, cement, and hockey sticks, marking a significant escalation in the ongoing trade dispute between the two nations.
The White House has framed the measures as a response to what it describes as Canadian policy failures, extending the conflict beyond traditional economic metrics to include environmental grievances.
This latest development comes just a day after diplomatic engagements between the two leaders, suggesting a rapid deterioration in bilateral relations.
Markets are reacting to the heightened uncertainty, with investors closely monitoring the potential impact on cross-border trade flows.
The threat of steep tariffs introduces new risks for companies with integrated supply chains across the US-Canada border, particularly in the targeted industries.