CHICAGO (AP) — After trade negotiations crumbled at the eleventh hour, U.S. President Donald Trump’s 50% tariffs on scores of Canadian imports kicked in Saturday.The new levies are expected to affect about 5% of Canada’s annual exports to the U.S., roughly $20 billion in goods ranging from hockey sticks to agricultural products. Canada’s Prime Minister Mark Carney quickly promised Saturday that his government would roll out “dollar for dollar” retaliatory measures starting Sept. 8.No further talks are scheduled. The latest escalation between the two countries — which once held one of the world’s most durable trade alliances — plunges them deeper into a trade war that has kept both sides of the border on edge throughout Trump’s second term in office. Experts warn steeper tariffs raise costs for businesses and almost always trickle down to households in the form of higher prices.“Nearly all industries and professions are likely to see downstream effects from this spiraling trade dispute,” said Augustine Lo, of law firm Dorsey & Whitney, whose work includes advising clients on international trade.Here’s what we know.
Which goods are affected?Again, the 50% tariffs from the U.S. are set to affect $20 billion of Canadian goods.Canada sends the vast majority of its goods exports to the U.S. (72% last year), and Trump administration says the new taxes will be levied on products ranging from hockey sticks to wine and cement. The list is long. According to documents published by the White House, other goods subject to the tax include honey, seeds and agricultural products — as well as select makeup, perfumes, clothing, jewelry, furniture, cameras, fabric and more.The 50% levy also applies to some products that were previously protected under the US-Mexico-Canada Agreement, a trade pact from Trump’s first term. That marks a shift from past levies — and further underlines questions around the future of the USMCA overall.
