Trump, who has imposed 25% tariffs on almost all products imported from Canada, has repeatedly said this year that the US has a “$200 billion” trade deficit with Canada – sometimes making the claim explicitly and sometimes using vaguer language about a supposed $200 billion subsidy or loss to Canada.

The Commission's response follows the US imposition of blanket 25% duties on Mexico and Canada and an additional 10% duty on China on Tuesday.

This move risks disrupting global trade, harming key economic partners, and creating unnecessary uncertainty,” says EU executive, expressing solidarity with “close allies” Canada and