Canada’s retaliatory tariffs on U.S. goods took effect just after midnight Tuesday, escalating trade tensions with the United States after negotiations between the two countries stalled.
The measures cover $20 billion of U.S. products, with tariffs ranging from 15% to 50%. Affected goods include steel, furniture, clothing and electronics.
The action follows U.S. tariffs covering $20 billion of Canadian exports, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.
The latest measures add uncertainty to the future of the United States-Mexico-Canada Agreement, which is undergoing annual reviews after U.S. President Donald Trump declined to extend it for another decade.
Canada has sent almost 68% of its total exports to the United States this year, according to Canadian and U.S. government data. Roughly 80% of those shipments previously moved duty-free under USMCA exemptions.
Canadian officials have warned that the trade conflict could affect investment and economic growth. Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Prime Minister Mark Carney’s advisory committee on bilateral U.S. economic relations, said the concern was an “escalatory spiral.”
Trump also threatened last month to increase U.S. tariffs on Canadian cars, trucks and automotive parts to 50% beginning January 1.
A Canadian government source said there are currently no talks between ministers or government officials from the two countries.
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