US-Canada Tariffs: Canada Prepares for Extended Trade War
BBC News reports on Canada’s response to US tariffs and the potential for a prolonged trade war.
Tariff Implementation
Canada’s counter-tariffs on US goods took effect on Tuesday, targeting nearly C$28bn worth of American products, including steel, furniture, and cotton T-shirts, with rates up to 50%. Fresh fish and lobster were initially included but later omitted due to industry pushback.
Diplomatic Stances
Both countries express a desire for a trade deal but have made no progress in reviving talks since their collapse in late August. Prime Minister Mark Carney seeks a "durable" agreement, while US Trade Representative Jamieson Greer accuses Canada of avoiding communication.
Potential Escalation
Greer hints at further US retaliation, suggesting the possibility of banning Canadian product imports. President Donald Trump has already targeted Bombardier, threatening to halt all US business with the Canadian airplane manufacturer unless it moves manufacturing south.
Bilateral Relationship
The US and Canada share the world’s largest bilateral trading relationship, valued at nearly $900bn in 2025. However, with existing and new tariffs, businesses on both sides face uncertainty about the future of this partnership.
Canadian Response
Canada’s counter-tariffs are described as "dollar-for-dollar" by Carney, applying to hundreds of US items from midnight on Tuesday. These additional tariffs come in addition to existing taxes on non-compliant US cars and trucks under the USMCA/CUSMA free trade agreement.
Public Opinion
Polls indicate that a majority of Canadians support their country’s response to US tariffs.
