Canada to hit US with retaliatory tariffs as trade war escalates

What the report says

Canada said it will impose retaliatory tariffs on a range of US imports after Washington introduced a 50 percent tariff on about $20bn in Canadian goods, deepening the trade dispute between the two neighbors and longtime allies. Prime Minister Mark Carney announced the response in Ottawa on Saturday, saying the Canadian measures will begin on September 8.

According to Al Jazeera’s report, Canada’s counter-tariffs will cover US steel, dairy, appliances, agricultural equipment, pulp and paper, electronics and other products, including some goods previously targeted by the United States. Carney said the government intends to match the US move “dollar for dollar” to defend Canadian workers, farmers, families and businesses. He also said the latest round of talks broke down after Washington proposed terms Ottawa viewed as unacceptable.

The US duties affect industries such as wine, furniture, dairy, cement, clothing, fishing rods and hockey equipment, and are estimated in the report to cover around 5.5 percent of Canadian exports to the US. No new talks were planned, a US trade official said. Carney also indicated Canada would unveil support measures for affected industries next week.

The trade fight comes as Canada seeks to reduce reliance on the US market, which remains its largest export destination. Al Jazeera reported that many Canadians support a firmer stance, while business groups and officials on both sides warned the tariffs could lift prices and hurt jobs and production.