Canada’s tariff strategy becomes a test of leverage and economic endurance

Canada’s trade response to U.S. tariffs has expanded the number of products caught in the dispute. Retaliatory measures are intended to create leverage, but they can also raise costs for importers and consumers depending on how long the confrontation lasts.

The policy challenge is therefore two-sided: apply enough pressure to influence negotiations while limiting damage to Canadian households and businesses that rely on cross-border supply chains.