Canada Slaps $US20 Billion Tariffs on US Goods Amid Escalating Trade War

Canada has imposed retaliatory tariffs on US goods worth $US20 billion ($A28 billion) after trade talks between the two nations stalled. The move marks an escalation in the 18-month-old trade war, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics.

According to Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, 'What we are worried about is an escalatory spiral.' However, he also acknowledged that Prime Minister Mark Carney needs to find areas of leverage in negotiations with US President Donald Trump.

The new tariffs do not allow Ottawa to exercise exemptions under the USMCA pact, which provided the domestic economy some resilience. Concerns about the agreement's future have fueled uncertainty about investment and growth, as Canada wages a trade war against an economy 13 times its size.