Canada's retaliatory tariffs on roughly $20 billion worth of American goods took effect at 12:01 a.m. Eastern Time on Tuesday, deepening the trade dispute between the two countries, according to Al Jazeera and the Canadian government.
The move comes in response to the latest round of U.S. tariffs on Canada, which followed the breakdown of trade negotiations and the Trump administration's imposition of 50% duties on $20 billion worth of goods from Canada, according to CBS News. Canada's Finance Ministry said the retaliatory tariffs are intended to match President Trump's tariffs "dollar for dollar," according to USA Today.
The Canadian measures cover hundreds of U.S. products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15 percent, 25 percent or 50 percent, according to the Korea Times. ABC News reported the tariffs, set to hit imports soon after midnight Tuesday, apply to hundreds of products ranging from aluminum foil to raincoats to cheese. The targeted goods amount to roughly 6 percent of the $333.6 billion the United States exported to Canada last year, the Korea Times reported, citing U.S. Census Bureau data.
Canadian Prime Minister Mark Carney, speaking in late August, said Canada would match Washington's new tariffs dollar for dollar "in order to protect Canadian workers, farmers, families, and businesses." The Korea Times reported Carney has said Washington's demands could damage key Canadian industries and weaken the country's independence, while Trump has threatened further punishment.
Al Jazeera reported the Canadian government said the counter-tariffs affect more than 700 products, and that Ottawa would launch a $5.42 billion support package for affected small and medium-sized businesses and workers.
On the eve of the tariffs taking effect, Trump threatened to block Canada-based aircraft manufacturer Bombardier from selling its planes in the U.S. unless it began manufacturing them domestically, according to Al Jazeera. ABC News separately reported that U.S. lawmakers from states bordering Canada, including Republican Sen. Susan Collins of Maine, have warned the trade dispute will hurt local businesses and consumers.
Citing the Kiel Institute for the World Economy, Al Jazeera reported that U.S. importers and consumers absorb 96 percent of the tariff burden, and that Americans could soon see higher prices on 550 consumer goods from Canada. The Korea Times reported RBC Economics assessed the tariffs were unlikely to dent overall U.S. growth, though they could hurt some businesses hard.
