Canada Hits US with $20 Billion Tariffs Amid Escalating Trade Dispute

A trade dispute between Canada and the United States is escalating, with both countries facing economic pain. The Canadian government announced it will impose retaliatory tariffs on about C$27.6 billion ($20 billion) worth of US goods, matching the value of Canadian products targeted by Washington's new 50 percent tariffs.

The measures, which take effect on September 8, cover around 700 US products with tariffs ranging from 15 to 50 percent. Ronald Stagg, a history professor at Toronto Metropolitan University, said both countries will bear the costs, but the larger American economy will suffer less.

In the United States, industries and states that trade heavily with Canada are likely to feel the effects more acutely. For Canada, however, the consequences could be more severe, particularly in the automotive industry, which may be 'devastated' if US tariffs continue.