Canada has escalated its trade confrontation with the United States, imposing retaliatory tariffs of between 15% and 50% on about $20 billion worth of American goods after negotiations between the two countries broke down.
The new measures, which took effect Tuesday, target a wide range of U.S. products, including steel, furniture, clothing, electronics and other imported goods.
The move marks another sharp turn in relations between the two long-standing allies, whose economies are deeply intertwined.
Canadian Prime Minister Mark Carney’s government has defended the tariffs as a direct response to duties imposed by Washington, with Ottawa seeking to match the U.S. measures on a “dollar-for-dollar” basis.
The latest escalation follows the collapse of trade negotiations in August, after the two sides failed to agree on key issues surrounding tariffs and market access. The dispute has also raised fresh concerns over the future of the USMCA, the trade framework linking the United States, Canada and Mexico.
With no immediate breakthrough in sight, businesses on both sides of the border now face increased costs and greater uncertainty as the trade dispute between the two North American neighbours intensifies.
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