Photo courtesy of Anadolu
Canada began collecting retaliatory tariffs on C$27.6 billion ($20 billion) worth of American products Tuesday, opening a new front in its escalating trade dispute with the United States.
The measures took effect at 12:01 a.m. and impose tariffs ranging from 15 percent to 50 percent on selected US-made goods. Steel, dairy products, household appliances, farm equipment, electronics and pulp and paper products are among the sectors affected.
Ottawa framed the package as a direct response to US tariffs imposed under Section 338, with the value of Canada’s countermeasures designed to match the American action dollar for dollar.
Washington moved to levy 50-percent tariffs on key Canadian products after bilateral negotiations broke down in late August. The US measures cover sectors including steel, aluminum, lumber and automotive components.
Canada limited its retaliatory duties to products originating in the United States. Goods already in transit when the measures took effect are exempt, preventing shipments dispatched before implementation from being caught by the new tariffs.
The latest round marks a sharp deterioration in commercial relations between two economies with deeply integrated supply chains, particularly in manufacturing, agriculture and the automotive industry.
US President Donald Trump has repeatedly argued that the bilateral trade relationship disadvantages the United States and has cited the trade gap as justification for imposing tougher barriers on Canadian imports.
With both governments now taxing billions of dollars in each other’s goods, the collapse of negotiations has shifted the dispute from tariff threats to broader retaliatory action, increasing pressure on businesses and industries operating across the border.