Canada & USA Trading Tariff Blows, One Country at a Time

Canada has announced tariffs on hundreds of American goods ranging from 15% to 50%, escalating the trade war between the two neighbours. The levies, imposed by Prime Minister Mark Carney’s government, took effect on Tuesday, September 8, and target US-made steel, appliances, and farm equipment.

In addition to dairy products, the tariffs apply to dual-use items and capital goods, with over 700 products in total. Ottawa blames Washington for initiating the trade dispute by imposing tariffs on Canadian goods in early July and suspending bilateral trade talks in August. Carney’s government is willing to absorb the costs of the trade war to bring the US administration back to the negotiating table.

The US responded swiftly, announcing retaliatory measures in the form of presidential directives banning the import of Canadian dairy products, motorcycles, and alcohol on September 29. In addition, the General Services Administration was ordered to remove Canadian goods from federal procurement lists, with a ban on purchases until Canada allows a level playing field for American agricultural businesses.

The Canadian government announced a relief package for Canadian small business enterprises and employees affected by the tariffs. The government created a 5.42 billion CAD fund to finance the initiatives and help workers in need.

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Carney spoke via video for the nation, explaining that while “there is always a cost to action,” the “inaction would have a far greater cost.”

Both sides show no signs of yielding, with neither willing to resume trade negotiations.