OTTAWA: Canada imposed a new round of retaliatory tariffs on American goods on Tuesday after negotiations with Washington failed to resolve an increasingly bitter trade dispute between the two longstanding allies.
The measures apply to about $20 billion in US imports, with tariffs ranging from 15% to 50% on products including furniture, clothing, and electronics. Ottawa says the measures are intended to match American duties imposed on Canadian products and provide Canada with greater leverage in future negotiations.
Prime Minister Mark Carney has argued that Canada cannot simply absorb repeated US trade restrictions without responding. Washington, meanwhile, maintains that its own tariffs are necessary to protect American industries and reduce dependence on foreign production.
The disagreement is particularly significant because the United States and Canada maintain one of the world’s largest bilateral trading relationships. Approximately 80% of Canadian exports to the US continue to enter duty-free under the USMCA, but the growing use of tariffs outside the agreement has been a concern for manufacturers and investors.
No new round of negotiations is currently underway, while President Donald Trump has also threatened additional restrictions affecting Canadian automotive and aerospace products. Economists warn that prolonged escalation could raise consumer prices and weaken investment on both sides of the border.