Trump proposes new tariffs on Canadian imports as trade tensions rise

President-elect Donald Trump has proposed a 25% tariff on all goods imported from Canada and Mexico. This follows his previous tariffs during his first term, including a 20% tariff on softwood lumber and 25% on steel. In response to Trump's earlier tariffs, Canada imposed retaliatory tariffs on about $16.6 billion worth of U.S. products. A new trade agreement, the Canada-U.S.-Mexico Agreement (CUSMA), was reached in October 2018, but tariffs remained until May 2019. Tariffs are taxes on imports that raise prices for consumers. They can protect domestic industries but often lead to higher costs for goods. The impact of Trump's proposed tariffs on Canada remains uncertain, with discussions ongoing between leaders.