Canada has officially rolled out retaliatory tariffs on nearly C$28 billion worth of American goods, signaling a prolonged and painful trade dispute with its largest trading partner.
The new counter-tariffs, which can reach up to 50%, apply to hundreds of US products, including steel, furniture, and cotton T-shirts. This move comes after trade talks between the two nations collapsed in late August, leaving businesses on both sides scrambling to adapt. The US already has a 25% tax on Canadian cars and trucks, along with recent 50% tariffs on goods like dairy, alcohol, and perfume.
Canadian Prime Minister Mark Carney stated that his government is still searching for a “durable” agreement. “We’re ready to sit down and strike that deal when the Americans are ready,” Carney said.
However, US Trade Representative Jamieson Greer pushed back, telling reporters that the ball is in Canada’s court. He warned that the US might respond by banning certain Canadian imports entirely.
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The tension has reached the highest levels. President Donald Trump recently threatened to halt all US business with Canadian airplane maker Bombardier unless it moves its manufacturing south. He has also taken aim at Canada’s currency and posted maps blending North America and Greenland under a single US flag.
In response, Canada had to carefully tailor its retaliation. After heavy pushback from its own seafood industry, the government removed fresh fish and lobster from the tariff list to avoid damaging its own economy.
While polls show that most Canadians support standing up to the US, economists warn that these new taxes will inevitably raise prices for everyday goods. The country already lost 41,000 jobs in August as the dispute escalated. For now, Canadian leaders are vowing to diversify their trade away from the US. But until a new deal is struck, both nations are locked in a costly standoff, and the burden will fall squarely on the workers and consumers caught in the middle.
Promise Idoko is Junior Reporter working with moderncrux He covers global politics and international affairs. Based in Nigeria,
