U.S. raises tariffs on several Canadian products to 50%
The United States has raised tariffs on several Canadian products to as much as 50%, escalating the ongoing trade dispute between the two neighboring countries.
The new U.S. tariffs affect products including certain cheeses, animal hides, motorboats, paper goods and steel. At the same time, some Canadian products that previously faced tariffs of the same magnitude are now exempt, including toilet paper, cement and whiskey sold in containers larger than four liters.
Canada retaliates with tariffs on U.S. goods
The latest U.S. measures came after Canada imposed retaliatory tariffs on American products effective September 8. The Canadian government introduced tariffs of 15%, 25% and 50% on U.S. goods worth about C$27.6 billion (US$20 billion), targeting products affected by Washington’s latest tariffs.
The Canadian countermeasures include higher tariffs on U.S. steel and aluminum products, as well as a range of other American goods. Canada said the measures were designed to respond directly to the latest U.S. trade actions.
Washington has responded with additional tariffs and plans to ban imports of certain Canadian products beginning September 29, including alcoholic beverages, some dairy products and motorcycles with engines larger than 800 cubic centimeters.
Canada faces growing trade pressure
Canada has a strong economic dependence on the U.S. market, with nearly three-quarters of its exports destined for the United States. The escalating tariffs could therefore create additional pressure on Canadian exporters and businesses.
The United States, Canada and Mexico are linked through the United States-Mexico-Canada Agreement (USMCA), a free trade agreement that replaced NAFTA in 2020. The pact establishes rules governing trade and investment among the three countries, including tariffs, market access, automotive production, labor and environmental standards.
The USMCA is currently being renegotiated, adding another layer of uncertainty to trade relations among the three North American economies.
