Canada Slaps $20 Billion in Tariffs on US Goods Amid Escalating Trade War
Canada has imposed tariffs on $20 billion worth of US goods in retaliation to the latest round of tariffs from President Donald Trump. The tariffs, which took effect at 12:01 a.m. Tuesday, cover hundreds of American products including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment.
The rates vary between 15%, 25%, or 50% and match Washington's dollar for dollar and rate for rate, according to Canadian officials. RBC Economics, the research arm of the Royal Bank of Canada, notes that the measures are unlikely to dent US growth overall but could hit some businesses hard.
Canadian Prime Minister Mark Carney has stated that the US demands could hollow out key Canadian industries and limit the country's independence. Trump has threatened to punish Canada further by banning the sale of aircraft from Bombardier, unless they manufacture planes in the United States.