Canada Imposes New Tariffs on US Imports Amid Escalating Trade War

Canada's new tariffs on US imports have gone into effect, targeting nearly 700 American products at rates ranging from 15% to 50%. This is in response to US President Donald Trump's administration imposing 50% levies on hundreds of Canadian goods worth over $28 billion.

Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), which represents over 100,000 small and medium-sized firms across Canada, says his members feel 'cannon fodder' in the trade war. The previous rounds affected large commodities, while this round focuses on smaller businesses who are already struggling.

JS Furniture, a Manitoba-based home furnishings and appliance retailer, estimates that American goods account for 60% of their sales by volume. General manager Brian Kyca is concerned about the impact on his business, particularly with tariffs ranging from 25% to 50% on various products, including laminate-style bedroom suites.

Colin Mang, an economics professor at McMaster University, notes that retailers may absorb most of the tariff cost again, which would significantly affect their profitability. Bank of Canada Governor Tiff Macklem expects the new tariffs will add costs for some businesses but are applied to a relatively narrow base.