Canada set to impose retaliatory tariffs on US goods as trade dispute escalates
Canada will begin applying retaliatory tariffs worth C$27.6bn on US imports from Tuesday, responding to Washington's 50% tariffs, as tensions between the two countries' leaders keep rising.
Canada is set to impose retaliatory tariffs on a wide range of American imports starting at 12.01am on Tuesday, covering goods worth C$27.6bn. The tariffs will range from 15% to 50% and will hit sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics — industries already hit hardest by existing US tariffs.
Ottawa says the countermeasures respond to Washington's decision to impose a 50% tariff on C$27.6bn worth of Canadian goods, effective since August 22. The Canadian government also clarified that the new tariffs will not apply to US goods already in transit to Canada when the measures take effect.
Rising tension between Trump and Carney
Relations between US President Donald Trump and Canadian Prime Minister Mark Carney have grown increasingly strained in recent weeks. Carney recently urged the Trump administration to "start being serious," noting that the trade dispute has increasingly spilled over into broader diplomatic friction.
Trump and senior US officials have repeatedly criticized Canada and its government. Trump also signed a symbolic executive order renaming Lake Ontario "Lake America," a move rejected by Canadians. US Vice-President JD Vance reportedly mocked Carney as well, suggesting the prime minister was trying to appear tougher than Trump.
Last month, Trump announced a new 50% tariff on cars and raw materials from Canada, accusing the country of having taken advantage of the US for years and asserting that the US does not need Canada, while Canada needs the US.
Carney, for his part, said Canada would not accept a trade deal that weakens protections for the French language in Quebec, noting that while American negotiators view such measures as an irritant, in Quebec they are considered rights. Quebec's long-standing laws protecting French and its distinct cultural identity have become a sticking point in negotiations, as US officials argue some rules put American businesses at a disadvantage.
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