Canada Unleashes Targeted Tariffs on US in Escalating Trade Dispute

Canada is expected to announce retaliatory tariffs against the US in response to Donald Trump's tariff escalation, but Ottawa plans to target specific industries to minimize damage to its own economy. The tariffs will initially be placed on US steel, dairy, appliances, electronics, and farm equipment, with a focus on protecting Canadian workers and businesses.

The move comes after trade talks collapsed, and Trump threatened to raise tariffs on Canadian automobiles, auto parts, and steel to 50% from January 1, 2027. Prime Minister Mark Carney accused Washington of seeking to weaken Canadian industry and limit Ottawa's economic independence.

Canada is deeply dependent on the US market, with about 70% of its goods exports going to America. Financial analysts estimate that the latest US tariffs could reduce Canada's GDP by between 0.3% and 0.6% in the short term, particularly affecting the auto sector.