Canada and the United States have long been close allies and trading partners. But lately, things have gotten tense. Canadian Foreign Minister Mélanie Joly recently spoke about these tensions in a CNN interview. The main issue? Tariffs. These are taxes placed on goods that are imported from other countries. The U.S. has been adding tariffs on products from Canada, and it’s causing a lot of problems on both sides of the border. You can watch the full video here: How Canada & the U.S. Fell Out Over Tariffs
What the Canadian Foreign Minister Said
Minister Joly made it clear that there are no real negotiations happening with the Trump administration right now. While there are some talks, they are not formal or serious. She pointed out that Canada is still facing heavy tariffs on steel, aluminum, and even on cars that don’t meet USMCA (United States-Mexico-Canada Agreement) rules. There’s also a new 25% tariff based on concerns over fentanyl crossing the border from Canada into the U.S.
But here’s the thing: less than 1% of the fentanyl in the U.S. actually comes from Canada. So Joly questioned the logic behind that decision.
Tariffs Hurt Everyday People
One of Joly’s main points was that tariffs don’t just hurt big companies or governments. They hurt regular people. When tariffs go up, the cost of goods goes up too. That means higher prices at the grocery store, at the gas station, and even in investment accounts due to market instability.
She described this as a “double whammy”: not only are people paying more for things, but they are also losing money in their retirement accounts because the markets are reacting negatively to trade wars.
Timing and Politics
The White House Press Secretary Karoline Leavitt said that the U.S. is moving at “Trump speed,” suggesting they are acting quickly. But Joly explained that Canada is in the middle of an election season, with a vote set for April 28. Because of that, Canada will be ready to begin real trade and security negotiations only after the election.
This timing mismatch has added another layer of complexity to the already strained relationship between the two countries.
Trust Is Broken
Joly didn’t hold back when talking about how this trade conflict has affected the relationship between Canada and the U.S. She said the trust has been broken. Canada has always been one of America’s closest allies, and suddenly being hit with unexpected tariffs felt like a betrayal.
She said that while Canada wants to work together with the U.S., they are not naive. They will protect their own jobs and economy if needed. Meanwhile, Canada is also reaching out to other countries and forming new trade relationships.
Real-Life Impact at the Grocery Store
CNN reporters went out to see how these tariffs are affecting everyday life. In a grocery store in New York City, they found that fresh produce, seafood, and coffee are already seeing price hikes or are expected to soon.
For example, bananas from Costa Rica and Ecuador are now more expensive because of a 10% universal tariff. Seafood like shrimp from Indonesia and Vietnam is also facing high tariffs—32% and 46%, respectively. Even salmon from Norway is being hit with a 16% tariff. These extra costs make their way to store shelves and eventually to shoppers’ wallets.
Coffee is another item expected to rise in price. Some of it comes from Brazil and Ethiopia, both now subject to a 10% tariff. Grocery store owners say they run on thin margins, so these added costs will almost certainly be passed down to consumers.
China Gets Involved
The video also explored the bigger picture, especially how China is reacting. China has accused the U.S. of abusing tariffs and says the American actions are unfair. They’re calling it protectionism and say they’ll fight back.
China’s spokesperson said that if the U.S. continues down this path, they will match tariffs and take other steps. These could include putting higher tariffs on U.S. farm products like soybeans and sorghum, stopping cooperation on important issues like fentanyl, and even limiting the number of U.S. films shown in Chinese theaters.
This kind of retaliation shows how serious the situation is becoming. It’s no longer just about Canada and the U.S.; it’s affecting the global economy.
Trade Numbers That Matter
Let’s look at some key figures:
- Less than 1% of fentanyl in the U.S. comes from Canada.
- China exports around $582 billion worth of goods to the U.S. each year.
- The U.S. is placing 104 new tariffs on Chinese products.
- Tariffs on seafood: 32% for Indonesia, 46% for Vietnam, and 16% for Norway.
- 10% universal tariff affecting many grocery imports like bananas and coffee.
These numbers show how wide-reaching and serious the tariff issues have become.
Final Thoughts: What Can Be Done?
Minister Joly ended her interview by encouraging Americans to speak up. She asked people to contact their lawmakers—congresspeople, governors, and others in power—to push for an end to the tariffs. Her message was clear: regular people are paying the price, and their voices need to be heard.
At the same time, Canada is working on counter-tariffs to protect its own economy. These tensions may not be solved overnight, but open communication and public pressure could help bring about change.
The situation is complicated, but one thing is clear: tariffs affect more than just governments and businesses. They hit everyone—especially the people trying to make ends meet every day.
As this story continues to unfold, it’s important for both Canadians and Americans to stay informed and stay engaged.
