The trade relationship between the United States and Canada, historically one of the world's closest and most extensive, has become a focal point under President Donald Trump's 'America First' policy.

After long insisting that Canada could avoid Trump tariffs through talks, Mark Carney now says that is unlikely for any nation.

Prime Minister Mark Carney said Canada will introduce a tariff rate quota for countries with which it has free trade agreements, excluding the US.

Canadian Prime Minister Mark Carney has said that Canada will introduce a tariff rate quota on countries it has free trade agreements with, excluding the United States, in order to protect its domestic steel industry. Carney announced the new measures on Wednesday.

Canada is one of the United States' top trading partners, with more than $410 billion of goods crossing into the country last year.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

China accounted for 5.89% of all U.S. trade in May, its lowest percentage in decades. Trump’s tariffs or trade trickery? It’s hard to dispute it’s a remarkable shift.

Canada will reduce the amount of foreign steel that importers can bring in tariff-free, a move to help domestic producers suffering from US President Donald Trump’s levies on the sector.