Canada Imposes Up to 50% Retaliatory Tariffs on U.S. Products

27.6 Billion Canadian Dollars in Steel, Aluminum, and More Canada is responding head-on to a trade war with the Donald Trump administration by imposing retaliatory tariffs of up to 50% on U.S. products. According to Bloomberg on the 7th (local time), Canadian Prime Minister Mark Carney announced that unless a last-minute agreement is reached, starting from the 8th, Canada will impose tariffs of 15%, 25%, and 50% on U.S. products. The targeted items include steel and aluminum, dairy products, home appliances, agricultural machinery, pulp·paper, electronics, and more, totaling imports worth 27.6 billion Canadian dollars (about 20 billion U.S. dollars). For a large portion of the previously affected American steel and aluminum products, the rate is being raised from the prior 25% retaliatory tariff to 50%. Furniture and clothing will also be subject to a 50% tariff, while dairy products such as cheese and home appliances will face a 25% tariff. Consumer goods such as motorcycles and cosmetics are also included in the tariff list. This measure is in response to the United States imposing a 50% tariff on Canadian products worth 27.6 billion Canadian dollars since the 22nd of last month. Canada has designed its tariffs using a "dollar-for-dollar, rate-for-rate" approach, matching the United States' tariff rates and targeted amounts. States such as Michigan and Ohio, where U.S. products hold a significant share of exports to Canada, are expected to be directly affected. Notably, these two regions are seen as key battlegrounds in the upcoming midterm elections in November, suggesting that Canada is aiming to increase political and economic pressure within the United States. Brian Clow, who served as a senior advisor for trade and U.S. relations during former Prime Minister Justin Trudeau's tenure, stated, "Canada's retaliatory tariffs are designed to make U.S. businesses and consumers feel the cost of the trade war, thereby incentivizing Washington to return to the negotiating table." The United States and Canada have held negotiations in recent weeks to ease trade tensions. President Trump announced on the 18th of last month that the two countries had reached a tentative agreement and allowed three days to finalize the details. However, the negotiations broke down as both sides failed to narrow last-minute differences. Since then, both countries have blamed each other for the failure of the talks. Canada asserted that the United States had made demands that could undermine its sovereignty and core industries such as automotive and midsize and large trucks. Meanwhile, the United States criticized Canada, claiming the agreement fell through due to domestic political reasons. The United States has warned of the possibility of additional actions in response to Canada's retaliatory tariffs. Jamison Greer, U.S. Trade Representative (USTR), indicated that not only additional tariffs but also a complete import ban on some Canadian products could be considered, although the specific timing and targeted items were not disclosed. President Trump has indicated that he intends to raise tariffs on Canadian automobiles from the current 25% to 50%, and to impose a 50% tariff on auto parts beginning in January of next year. However, no formal procedures have been initiated to implement these measures yet. Prime Minister Carney has left the door open for further negotiations with the United States but maintains that he will not sign any agreement that does not ensure the competitiveness of Canada's automotive, steel, and aluminum industries. Last week, he stated, "When the United States is ready, we are prepared to sit at the negotiating table and reach a sustainable agreement." There are concerns that the retaliatory tariffs could also weigh on the Canadian economy. Oxford Economics estimates that, considering both U.S. tariffs and Canada's retaliatory measures, along with related support policies, Canada's economic output will fall by about 0.3% compared to previous forecasts. In particular, there are concerns that industries highly dependent on exports to the United States could face more significant employment and cost pressures. This content was produced with the assistance of AI translation services. © The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.