Canada Hits Back at US with Tariffs in Escalating Trade War

Canada has retaliated against the United States in the ongoing trade war by imposing tariffs on hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment. The tariffs, which take effect immediately, match Washington's dollar for dollar and rate for rate, covering about $20 billion in American goods, roughly 6% of the $333.6 billion the United States exported to Canada last year.

The move comes after U.S. President Donald Trump threatened to punish Canada further, including banning the sale of aircraft from Canadian manufacturer Bombardier unless they manufacture planes in the United States. Trump has also warned that Canada's economy could collapse if Prime Minister Mark Carney continues to defy him.

Canadian historian Robert Bothwell said Trump's pressure is making an example of Canada and Carney, who has become a global voice for standing up to Trump's economic policies. The Canadian public has rallied behind Carney, with many boycotting U.S. goods and sharply cutting travel to the United States.

While Canada starts at a disadvantage, with the U.S. economy roughly 13 times larger, some experts believe that Trump's domestic unpopularity and approaching midterms could give Canada an advantage in the trade war.