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Canada retaliates with import taxes on US goods as tariffs escalate
The new Canada measures include matching US metals tariffs at 50%, and they could lift construction-material costs that feed into higher home prices.
The US and Canada have been in a trade conflict since President Donald Trump restarted tariffs after returning to the White House, and the latest round escalated this week with Canadian Prime Minister Mark Carney imposing retaliatory import taxes on a range of US goods.
BBC Business reports the Canadian measures are aimed at US tariffs that Trump has threatened to raise, while the impact is likely to vary across sectors tied to cross-border supply chains.
A key risk area is autos and parts, where Trump has threatened to increase tariffs on Canadian vehicles from 25% to 50% starting 1 January 2027, a move that could further hit the automotive industry and push more costs into consumer prices as dealer cushions wear thin.
The escalation also targets construction and materials, with Canada matching US metals rates at 50% and adding taxes on wood products such as plywood and even screws used in timber construction, which could raise costs for builders and contribute to higher housing prices, according to the report.