Canada Retaliates Against US Tariffs with Targeted Measures

Canada is expected to announce retaliatory tariffs against the US in response to Donald Trump's tariff escalation. The measures will target US steel, dairy, appliances, electronics, and farm equipment.

The Canadian government has indicated that it may shift towards more targeted retaliation aimed at protecting its workers and businesses. This approach would focus on imposing pressure on American industries without triggering an indiscriminate tariff response that could further damage the Canadian economy.

Canada's economy remains deeply dependent on the US market, with about 70% of its goods exports going to the United States. The latest US tariffs could reduce Canada's GDP by between 0.3% and 0.6% in the short term, particularly affecting the auto sector which is exposed due to production supply chains that cross the US-Canada border.

Prime Minister Mark Carney has accused Washington of seeking to weaken Canadian industry and limit Ottawa's economic independence. 'An attitude at the negotiation table that Canada is a subsidiary of the United States' is not something we're going to accept,' he said.