Canada

The US–Canada Trade War: From the Fentanyl Tariffs to Section 338 and Dollar-for-Dollar Retaliation

The conflict began with Donald Trump's November 2024 threat to impose tariffs on Canada over fentanyl and border concerns, followed by IEEPA tariffs and Canadian retaliation in early 2025. A USMCA exemption sharply limited the reach of the fentanyl tariffs, but separate U.S. Section 232 duties on steel, aluminum, autos and lumber remained a major source of pressure; the Supreme Court later struck down the IEEPA tariffs.