Canada Retaliates Against US Trade War With $20 Billion Tariffs
Canada has retaliated against the US in its ongoing trade war by imposing tariffs on approximately $20 billion worth of American goods, matching Washington's dollar for dollar and rate for rate. This move is seen as a symbolic resistance to President Donald Trump's economic pressure. According to Canadian historian Robert Bothwell, 'Carney and Canada have become symbolic of resistance to him.'
The affected products include steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment, with rates ranging from 15% to 50%. The Canadian government claims that its tariffs cover about 6% of the $333.6 billion in US exports to Canada last year.
RBC Economics has stated that while these measures are unlikely to dent US growth overall, they could have a significant impact on certain businesses. This is not the first time Canada has taken steps beyond tariffs; eight provinces restrict or ban the sale of US alcohol, leading to a 70% decline in US spirits exports.
US trade representative Jamieson Greer has threatened that Washington could ban some Canadian goods outright. President Trump has also made personal attacks on Canadian Prime Minister Mark Carney, warning that Canada's economy could collapse if he continues treating him as 'the enemy.'