Canada slaps retaliatory tariffs of up to 50% on $20 billion in US goods

Canadian retaliatory tariffs of up to 50% on some 700 US goods, from steel to clothing to cheese, took effect on Tuesday as relations between the US and Canada took yet another turn for the worse.

The move by Canadian Prime Minister Mark Carney solidified Canada as one of the few nations to choose confrontation in President Trump’s trade wars. Canadians say they are willing to endure economic pain to make a point, and neither side has shown much interest in backing away from further escalation.

The new Canadian tariffs were first announced in August to match an array of 50% tariffs that Trump imposed after trade talks broke down.

Negotiations to avert the standoff have largely been on ice in recent weeks, as Trump has mostly been lobbing insults and Canadian leaders, including Carney, have been discussing plans to disentangle their economy from the US as much as possible.

The new measures went into effect at 12:01 a.m. ET, doubling the tariffs on American steel and aluminum products to 50%. Other tariffs range from 15% to 50% on clothing, wood products, appliances, cosmetics, farm equipment, and more.

In total, the new tariffs affect about $20 billion in US goods, or roughly 6% of what the United States sent to Canada last year.

Canada announced the plan as a “dollar-for-dollar” response to Trump, but the duties are more limited than the US tariffs, which hit about $28 billion in Canadian imports, reflecting Canada’s smaller economy.

Canada had also planned additional tariffs on maritime products like lobster and fish, but those were rolled back after an outcry on both sides of the border.

Carney told reporters recently that he is in no hurry to restart talks with the US and is focused on increasing trade with other countries instead of “waiting for a call, refreshing on social media to see what’s coming across.”

For his part, Trump has been busy on social media, firing insults at Canada since the talks broke down.

Further escalation likely

Trump on Monday posted a map that showed Canada and Mexico as part of the United States and leveled a threat to ban sales of Canadian aircraft manufacturer Bombardier in the United States.

Bombardier quickly responded in a statement that the company employs thousands of Americans whose jobs could be put at risk if the president follows through on the threat. Republican Sen. Jerry Moran, a Trump ally, echoed that concern, noting that Bombardier employs more than 1,000 workers in Wichita, Kan.

Trump is pledging further escalation that could have deeper economic ripples, most notably a threat of 50% tariffs on autos and auto parts at the end of the year. Last Friday, he went so far as to muse about ending “all trade with Canada” as he threatened embargoes on the world.