Canada Slaps USA with $28 Billion in Retaliatory Tariffs Amid Trade War

Canada has imposed retaliatory tariffs on American goods worth nearly $28 billion Canadian dollars, including steel, furniture, and textiles. The new tariffs have a possibility of increasing to 50% and cover hundreds of products from the USA.

The tariffs were implemented after Canada's Prime Minister Mark Carney stated that the country is seeking a long-term agreement with the USA but no negotiations have taken place since they broke down at the end of August. In contrast, U.S. Trade Representative Jamieson Greer noted that the decision now lies with Canada and that the USA offered a better deal but was turned away.

Greer also warned of possible retaliatory measures from the USA, including bans on the import of Canadian goods, and President Donald Trump threatened to sever business ties with Bombardier if it does not move production to the USA. The company plays a significant role in the Canadian economy and contributes substantially to the country's GDP.

Trade between Canada and the USA constitutes one of the largest bilateral alliances in the world, with a volume that could reach nearly $900 billion by 2025. Despite its importance, recent measures, including tariffs imposed by the USA on Canadian cars and steel, create serious challenges for businesses on both sides of the border.

Surveys show that most Canadians support the imposition of retaliatory tariffs; however, economists warn of potential price increases on everyday goods such as clothing and food. The CEO of the Canadian Chamber of Commerce called for a more measured approach to retaliatory measures to avoid further escalation of the conflict.