**Breaking News: Trump’s Tariff Blitz Sparks Immediate Crisis with Canada**
In a shocking escalation, President Trump’s recent imposition of a staggering 35% blanket tariff on all Canadian goods has ignited a fierce backlash, threatening to unravel decades of trade cooperation between the U.S. and its northern neighbor. Just moments ago, Canadian Foreign Minister Mélanie Joly labeled the tariffs a “direct attack” on Canadian workers, warning of severe repercussions if Washington does not reverse course by July 21st.
The stakes are monumental. Ford has already admitted that these tariffs could cost the company $2.5 billion by 2025, while Stellantis faces a potential profit collapse of 75%. The automotive industry, the backbone of the U.S. economy, is on the brink of a crisis, with manufacturers warning that sticker prices for vehicles could skyrocket by $7,000 as costs surge.
The clock is ticking. Ottawa is prepared to retaliate with its own 25% tariffs and export bans on critical resources like hydro power and aluminum, which are vital for U.S. factories. Ontario Premier Doug Ford has confirmed readiness to impose a hefty surcharge on electricity exports, potentially crippling operations in New York and Michigan. The ripple effects are already being felt, with cross-border travel plummeting and businesses bracing for a summer of economic turmoil.
Analysts warn that the fallout from these tariffs could extend far beyond the automotive sector, impacting everything from construction costs to consumer goods. With household incomes projected to drop by $320 if these tariffs remain in place, the economic landscape is shifting rapidly, leaving many to wonder how long consumers will tolerate rising prices.
As tensions mount, the question looms: Will the White House relent before the July 21st deadline, or will Canada retaliate, further escalating this trade war? The international community watches closely as both nations stand at a precipice, with the future of their economic relationship hanging in the balance.