US-Canada Tariffs: Canada Prepares for an Extended Trade War
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Canada’s Retaliatory Tariffs on US Goods Take Effect
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By
Nadine Yousif
Senior Canada Reporter
Published 2 hours ago
Canada has implemented retaliatory tariffs on nearly C$28bn ($20bn; £15bn) worth of US goods, effective Tuesday, as a response to existing US tariffs. These counter-tariffs, reaching up to 50%, include products ranging from steel and furniture to cotton T-shirts, with fresh fish and lobster initially on the list before Canada removed them due to industry pushback.
Both Countries Seek a Trade Deal
While both US and Canadian officials express a desire for a trade agreement, no progress has been made in reviving talks since their collapse in late August. Prime Minister Mark Carney emphasizes the need for a "durable" deal beneficial to both nations.
US Trade Representative Jamieson Greer, however, places the blame on Canada, stating, "We offered them the best deal, they looked at it square in the face and turned around." She hints at further US retaliation, cautioning against Canadian countermeasures.
President Trump’s Threats Loom Over Bombardier
In a series of Truth Social posts, President Donald Trump targets Canada over its exchange rate and shows a map with North America under the US flag. He also threatens to halt all US business with aircraft manufacturer Bombardier unless they move manufacturing south. Bombardier, a significant contributor to Canada’s GDP, faces new US tariffs alongside Canadian counter-tariffs.
The Impact on Businesses
With existing US tariffs and new Canadian counter-tariffs in place, businesses on both sides face uncertainty. The US has already imposed 25% taxes on Canadian cars and trucks, steel, aluminum, and lumber, while Canada’s newest counter-tariffs add hundreds of items from the US.
