Canada’s retaliatory tariffs on imports from the United States have taken effect, escalating the trade dispute between the two countries. Tariffs ranging from 15 percent to 50 percent will apply to nearly $20bn worth of US imports from 12:01am ET (04:01 GMT) on Tuesday, matching US-imposed levies on Canadian goods including machinery, textiles and consumer products. The new retaliatory tariffs apply to products including steel, household appliances, agricultural equipment and dairy. “Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Canadian Prime Minister Mark Carney told reporters in late August. US President Donald Trump announced 50 percent tariffs against Canada in July, citing “discriminatory treatment” of US products.
The announcement prompted the countries to enter trade talks in August, but a final deal failed to materialise before a deadline imposed by Trump. “Canada wants the benefits of being a State, without being one!!!” Trump posted on Truth Social in response to Canada’s announcement in August. The Canadian government said in a statement that the counter-tariffs will impact more than 700 products, adding that it would launch a $5.42bn support package for affected small and medium-sized businesses and workers. On the eve of Ottawa imposing its tariffs, Trump threatened to block Canada-based aircraft manufacturer Bombardier from selling its planes in the US unless it began manufacturing them in the country. The dispute has also extended beyond tariffs, with Trump signing an order last month renaming Lake Ontario “Lake America” for US federal use.
The retaliatory tariffs could place a financial burden on US automakers as Canada is the largest buyer of US-manufactured cars. Americans could soon see increased prices on 550 consumer goods from Canada. According to a report from the Kiel Institute for the World Economy, US importers and consumers absorb 96 percent of the tariff burden.
