US Escalates Trade War With Canada

Summary

Bloomberg's Rosalind Mathieson details the latest U.S. escalation in the trade war with Canada, including import bans on dairy and alcohol, tariff extensions, and a possible move to bar Canadian firms from U.S. government contractor business. Bombardier is specifically named and its shares fell, while Republican politicians worry about U.S. supplier jobs. The report also covers Canada and the EU moving toward closer trade and security ties as middle powers look to diversify relationships.

• U.S. moves to ban some Canadian imports, mainly dairy and alcohol, with import bans due in three weeks.
• Section 33 tariffs are extended to items like golf carts and bed mattresses, while salt and bed sheets are excluded.
• Trump threatens to bar Canadian companies from selling to U.S. government contractors.
• Bombardier is singled out; shares fell and Kansas Republicans are concerned about U.S. supplier jobs.
• Canada and the EU are working on deeper trade and security ties covering critical minerals, defense, space and research.
• The report frames the shift as part of Mark Carney's Davos theme of middle powers diversifying relationships.
• The EU is also engaging partners such as India on trade.