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Canada’s retaliatory tariffs on US goods take effect as dispute escalates
The levies cover nearly C$28 billion of US products and reach 50%, while the US says it could consider tit-for-tat tariffs as early as Tuesday.
Canada has begun applying retaliatory tariffs on American goods in a widening trade dispute, with Prime Minister Mark Carney warning the pivot away from the US as its top trading partner will carry a cost.
In a video address, Carney said the counter-tariffs are necessary to protect Canadian workers and that the government would support affected employees for as long as needed, while also focusing on diversifying trade relationships and building the economy.
The Canadian levies will apply to nearly C$28 billion, about $20 billion, of US products, including steel, furniture, and cotton T-shirts, and will be as high as 50%. Both sides have said they want a deal, but no new talks have been scheduled since negotiations collapsed in late August.
The US trade representative said Washington would consider tit-for-tat tariffs on Canada as early as Tuesday, according to BBC Business. Separately, US President Donald Trump threatened to halt all US business with Canada-based airplane maker Bombardier unless it moved manufacturing south, arguing import taxes encourage Americans to buy US-made goods and boost investment in the US, while economists have warned tariffs can raise prices for consumers on everyday items.