Canada Slaps $20 Billion Worth of Tariffs on US Goods Amid Escalating Trade War
Canada has retaliated against the US trade war by imposing tariffs on about $20 billion worth of American goods, including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment. The tariffs range from 15% to 50% and are set to take effect immediately.
Canadian Prime Minister Mark Carney has been a key figure in the country's resistance against US President Donald Trump's economic pressure. In response to Trump's threats, Carney has said that Washington's terms could 'hollow out' key Canadian industries and limit the country's independence.
RBC Economics has noted that while the measures may not significantly impact US growth overall, they could hit some businesses hard. The research arm of the Royal Bank of Canada also pointed out that Canada has already restricted or banned sales of US alcohol in eight of its 10 provinces, resulting in a 70% decline in U.S. spirits exports to Canada.
Trump's pressure on Canada has been relentless, with threats to ban Canadian aircraft manufacturer Bombardier from selling planes in the US unless they manufacture them domestically. Carney has warned that Trump's tactics are backfiring and have actually strengthened support for his government.