Canada’s retaliatory US tariffs set to take effect as trade dispute grows

Canada is set to impose retaliatory tariffs on billions of dollars’ worth of American imports early on Tuesday, escalating a trade dispute with the US. The tariffs, ranging from 15% to 50%, will apply to C$27.6 billion in imports from the US, targeting sectors like steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics—industries most affected by US tariffs. These measures follow the US’s decision to impose a 50% tariff on $27.6 billion of Canadian goods, effective August 22.

Canada clarifies that these counter-measures do not apply to US goods in transit. Tensions between Canada and the US have grown, with Prime Minister Carney urging the Trump administration to take a more serious approach. Trump and US officials have repeatedly criticized Canada, including a symbolic renaming of Lake Ontario to ‘Lake America,’ which Canadians have rejected.

Vice-President JD Vance reportedly mocked Carney, calling him ‘out-toughing’ Trump. Last month, Trump announced new 50% tariffs on cars and raw materials from Canada, accusing Canada of ‘ripping off’ the US for years. Carney stated Canada would not accept a trade deal that weakens French-language protections, citing concerns from Quebec over rules that disadvantage US businesses.

Quebec’s laws protecting French language and culture have become a key sticking point in the trade negotiations.

Source: The Guardian