Canada implemented retaliatory tariffs on billions of dollars of US imports starting Tuesday at 12:01 am, escalating a trade war between the two nations. These duties, which range from 15% to 50%, apply to imports valued between $20 billion and C$27.6 billion. The move comes as tensions intensify between US President Donald Trump and Canadian Prime Minister Mark Carney.
The measures target approximately 700 products across multiple industries, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, electronics, furniture, and clothing. Duties on US steel and aluminum products have specifically doubled to 50%. Canada is matching US tariffs dollar-for-dollar in response to President Trump's 50% tariffs on Canadian goods, which were imposed over what Washington deemed discriminatory treatment of US alcohol, automobile, and dairy industries.
This latest escalation follows the collapse of trade talks in late August, with Prime Minister Carney betting that standing up to the US will eventually help Ottawa’s negotiating position. The tariffs are expected to hit US exporters particularly hard in states such as Michigan and Ohio, which host heated races in November's midterm elections. As the trade war heats up, Washington has warned of a new round of American tariffs in response to the Canadian levies.