Canada Hits Back With $20 Billion in Retaliatory Tariffs as Trade War Deepens
Canada imposed retaliatory tariffs on $20 billion of US goods, escalating the trade war and threatening a key alliance.
Canada has imposed retaliatory tariffs on approximately $20 billion worth of American goods, sharply escalating the trade dispute between the two longtime allies. The new duties, announced on Tuesday, target a wide range of products including steel, dairy, appliances, and farm equipment.
The measures extend well beyond industrial goods, affecting everyday consumer items such as seafood, cheese, clothing, cosmetics, and toilet paper, with some tariffs reaching as high as 50 percent. The move threatens one of the world's largest trading relationships and adds fresh strain to ties between Washington and Ottawa.
Finance Minister François-Philippe Champagne framed the response as a defensive measure, stating that Canada did not choose this conflict but must stand up when economic integration is used as a weapon. He described the situation as an unprecedented challenge imposed on the country.
The dispute comes less than two and a half months before the US midterm elections, raising the prospect of prolonged friction that could increase costs for American businesses and consumers. The escalation marks a significant deterioration in relations between the two neighbors, which have long been considered close partners.