Tariffs Take Effect: Canada Hits Back at US Trade War

Canada's retaliatory tariffs on U.S. goods took effect after midnight on September 8, marking another escalation in the ongoing trade war between the two countries.

The tariffs cover about $20 billion worth of U.S. products exported to Canada and range from 15% to 50% across an array of goods, including dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics.

According to Angelo Kourkafas, Edward Jones' senior global strategist of investment strategy, the new tariffs create a 'meaningful but manageable headwind' for the Canadian economy, although their effects will be felt unevenly across provinces and sectors.

U.S. producers who regularly export products to Canada are likely to face lower demand and need to rethink their supply chains to serve other countries or more domestic consumers.