Canada retaliates with tariffs on US goods as trade war escalates
By The South Asia Times
OTTAWA — Canada’s retaliatory tariffs on US goods took effect shortly after midnight on Tuesday, escalating an 18-month-old trade war with its biggest trading partner after negotiations between Ottawa and Washington collapsed last month, according to AFP.
The new Canadian measures cover about $20 billion worth of US products, with tariffs ranging from 15% to 50%. The targeted goods include steel, furniture, clothing, electronics and other products.
The dollar-for-dollar retaliation marks a significant escalation between the two neighbouring countries, whose economies are deeply integrated. Officials in Washington and Ottawa have blamed each other for the breakdown of negotiations that had appeared close to producing an agreement.
Canadian Prime Minister Mark Carney has defended the decision to retaliate, arguing that Ottawa must protect Canadian industries and workers from what it considers unfair US trade measures.
The latest tariffs come after Washington imposed new 50% tariffs on around $20 billion of Canadian goods in late August, affecting products including cement, dairy goods and hockey equipment.
The dispute is also raising concerns about the future of the United States-Mexico-Canada Agreement (USMCA), the North American free trade pact that governs much of the countries' trade.
Canadian officials have stressed that the latest measures are intended to match US tariffs on a dollar-for-dollar basis rather than launch a broader campaign against American imports.
However, economists and business leaders have warned that further escalation could increase costs for companies and consumers on both sides of the border.
