Canada has begun imposing retaliatory tariffs of up to 50 percent on a wide range of American goods worth about C$28 billion ($20 billion), escalating a trade dispute with its biggest trading partner as efforts to reach a new deal remain stalled.
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The counter tariffs, which took effect Tuesday, cover hundreds of US products, including steel, aluminium, milk, clothing, furniture and golf clubs. Cheese, toilet paper and some household appliances will face a 25 percent tariff, while forklift trucks and industrial moulds will attract a 15 percent levy.
The measures are intended to match the value of US tariffs imposed on Canadian goods, but they also expose Canada to a difficult economic balancing act. The US and Canada have one of the world’s largest bilateral trading relationships, worth almost $900 billion in 2025, leaving businesses and consumers on both sides vulnerable to a prolonged dispute.
Canada’s response has already been adjusted after its seafood industry warned that tariffs on fresh fish and lobster could hurt Canadian businesses as much as their American counterparts. The government removed dozens of seafood products from the list, highlighting the limits of retaliation against a deeply integrated trading partner.
