Canada braces for Trump’s ‘liberation day’ tariff fight [Video]

Canada is bracing for the fallout of President Donald Trump’s escalating trade war, with economists warning of spiking grocery prices, major job losses and even a potential recession if threatened U.S. tariffs take effect.

The United States is Canada’s largest trading partner, accounting for nearly two-thirds of Canadian imports and receiving over 70% of its exports. But under Trump’s new “liberation day” tariffs – 25% on Canadian goods and 10% on energy – Ottawa now faces an economic gut punch that could ripple across key provinces, industries and its national election campaign.

Trump has repeatedly blasted what he calls “unfair” trade practices, citing Canada’s trade imbalance with the U.S. to justify the sweeping tariffs.

“This is the beginning of liberation day in America,” Trump said last week. “We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years. They’ve taken so …