Members of U.S. President Donald Trump’s administration are defending his growing trade war with Canada and the impact it’s having on markets and retirement savings, claiming any short-term pain will eventually lead to long-term “prosperity.”
The U.S. stock market sank further Tuesday after Trump said he would double tariffs on Canadian steel and aluminum, continuing a downward trend that has pulled Wall Street more than 10 per cent below its record set just a month ago.
Trump said it was in direct response to Ontario’s move to put an export tax on electricity it sells to U.S. states, which was retaliation for the sweeping 25 per cent U.S. tariffs imposed earlier this month. The White House later said Trump was keeping the original 25 per cent rate for steel and aluminum tariffs after Ontario Premier Doug Ford lifted the electricity surcharge, but not in time for markets to bounce back.
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