Canada imposes 50% tariffs on $27.6 billion in US goods as trade war escalates
Ottawa launched counter-tariffs matching dollar-for-dollar rates, covering hundreds of product categories including steel and dairy. President Trump simultaneously threatened a complete ban on Canadian alcohol and announced new fees.
Canada's retaliatory tariffs on approximately $27.6 billion worth of US goods took effect on Tuesday. The duties apply in rates of 15%, 25% and up to 50%, affecting steel, aluminium, furniture, electronics, dairy, and agricultural equipment. Officials stated the measures are identical to the latest US tariffs imposed on Canada. This action covers around 6% of goods the United States exported to Canada last year. In a separate development, President Trump issued an executive order banning imports of Canadian alcohol and certain dairy products like whey, effective September 29. He also announced new surcharges ranging from 15% to 50% starting September 15 on items such as mattresses, motorboats, and golf carts. Prime Minister Mark Carney stated he would continue fighting for Canada's sovereignty despite the economic costs. RBC Economics noted that while overall US growth faces modest negative risks, American businesses could face considerable hardship. Trump also threatened to ban sales of all Bombardier aircraft in the United States. Meanwhile, eight of Canada's ten provinces restrict or prohibit sales of US alcohol, with exports falling over 70% since restrictions began.
