Canada Imposes Retaliatory Tariffs as US Trade War Escalates

WASHINGTON: (News Desk) – Canada has imposed retaliatory tariffs on billions of dollars’ worth of US goods, escalating an already tense trade dispute between the two North American neighbors.

The new duties, ranging from 15 to 50 percent, cover around $27.6 billion worth of US imports. Targeted products include steel, aluminum and dairy items such as cheese, while some seafood products were removed from the initial tariff list.

Ottawa’s move follows US President Donald Trump’s decision to impose 50 percent tariffs on a comparable value of Canadian goods. Washington had justified the measures by citing what it described as unfair treatment of American alcohol, automobile and dairy industries.

US tariffs have affected a range of Canadian exports, including hockey sticks and cement, representing roughly 5.5 percent of Canada’s exports to the United States.

The dispute intensified further after Trump threatened to block sales of Canadian aircraft manufacturer Bombardier in the US unless the company shifted more of its production south of the border.

Bombardier responded by highlighting its extensive economic footprint in the United States, saying it supports tens of thousands of American jobs and has direct employees across more than 20 states. The company also said it spends more than $2.5 billion annually with US suppliers, working with around 2,800 American companies across 47 states.

Trade tensions have also spilled into political rhetoric. Negotiations between Ottawa and Washington broke down on August 21, with Canadian Prime Minister Mark Carney saying US demands had become unacceptable, particularly restrictions involving Canada’s trade agreements with other countries.

Carney also objected to what he described as threats concerning the French language and Quebec culture. US Trade Representative Jamieson Greer later said Washington recognized the sensitivity of French-language protections.

The increasingly hostile rhetoric has continued in recent weeks, with officials from both countries exchanging sharp remarks. Carney has urged Washington to move away from social-media provocations and return to serious negotiations.

Despite the escalating dispute, Canada remains heavily dependent on the US economy. Nearly 60 percent of Canadian imports come from the United States, while around 70 percent of Canadian exports are destined for the US market.

To cushion the impact on businesses and workers, the Canadian government has announced an assistance package worth $7.5 billion.