Canada Moves from Warnings to Measures: Tariffs of Up to 50% on U.S. Products

Canada has decided to respond to Donald Trump’s tariffs on Canadian imports by announcing retaliatory tariffs of up to 50% on a range of products from the United States.

The Canadian measures, which are expected to take effect on September 8, will cover U.S. goods worth around 28 billion Canadian dollars, equivalent to approximately 20 billion U.S. dollars.

The products included on the list include steel, furniture, fresh tuna and cotton T-shirts. According to Canadian officials, the goods were selected to correspond with Canadian products that have been hit by U.S. tariffs.

The decision marks the latest escalation in the trade dispute between the two friendly countries, while the prospects of a retreat from the conflict appear increasingly slim. Negotiations between the United States and Canada broke down at the end of last week, with both sides accusing each other of presenting unacceptable demands in the final moments of the talks.

In addition to the tariffs, the Canadian government has announced that it will allocate a further 7.5 billion Canadian dollars to programs supporting businesses and workers affected by the U.S. measures. According to the government, the aim of these funds is to curb job losses and help companies cope with the impact of the trade dispute.

Tariffs on trade between the United States and Canada are expected to have consequences on both sides of the border, even though the countries are traditionally considered among the world’s closest economic partners. Supply chains built up over decades risk facing higher trade costs as a result of measures imposed by both governments.

Rising costs could be reflected in product prices, affecting consumers, large companies and small businesses.