By NYA Editorial Staff
The trade rift between Canada and the USA intensified significantly after bilateral negotiations broke down. In response to the initial U.S. levies, Canadian Prime Minister Mark Carney instituted counter-tariffs that strategically target key sectors and products from politically sensitive swing states ahead of the U.S. midterm elections.
Canada’s new import duties range from 15% to 50% across several categories of U.S. products. Its highest tariff rate of 50% is applied to U.S. steel, aluminum, iron products, furniture, and clothing. Other targeted sectors include dairy, agricultural equipment, paper, household appliances, and electronics.
Hours after Canada’s tariffs took effect, the Trump administration responded with further economic measures. Trump directed the General Services Administration to restrict federal agencies from buying Canadian-origin products. Trump called for a boycott and threatened to block the U.S. sales of planes from Canadian aerospace manufacturer Bombardier unless it moves manufacturing operations to the United States.
The new measures from Canada 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.