Canada-US trade tensions escalate over tariffs.

Published by: Greatfuture Info

August 28, New Delhi:

 The Canada–United States trade dispute is hardening, with neither side currently signalling an immediate return to negotiations.

Canada has announced counter-tariffs on 27.6 billion Canadian dollars, which is approximately $20 billion, worth of American imports.

Beginning September 8, duties of 15, 25 and 50% will be imposed on more than 700 categories of U.S.-made products.

The highest tariff of 50% will apply to American steel, aluminum, furniture, clothing and apparel. Appliances, dairy products (including cheese), fish, seafood and certain steel and aluminum derivatives will face a 25% tariff. Selected electronics and tools will face duties of 15%.

Canada’s existing counter-tariffs on American automobiles will also remain in place.

Ottawa says the measures will match the latest American tariffs “dollar for dollar and rate for rate.”

The retaliation follows the United States imposing 50% tariffs on approximately 27.6 billion Canadian dollars’ worth of goods on August 22, after negotiations between the two countries collapsed.

Canada maintains that Washington introduced last-minute demands that were unfair, economically damaging and inconsistent with Canadian sovereignty.

The White House has now formally rejected that explanation. It has accused Canada of choosing retaliation over negotiation and defended the American tariffs by pointing to Canadian restrictions involving automobiles, dairy products and American alcoholic beverages.

President Donald Trump has also threatened to raise tariffs on all Canadian cars, trucks and automotive parts to 50% from January 2027. Such a move could severely disrupt the deeply integrated North American automobile industry.

To protect businesses and workers, the Canadian government has announced a support package worth 7.5 billion Canadian dollars, i.e. approximately $5.4 billion.

The package includes liquidity support for businesses, employment-insurance flexibility, workplace training, job-retention programmes and assistance for tariff-affected industries.

There are also indications that Canada is preparing for a prolonged confrontation. Manitoba Premier Wab Kinew says discussions with Prime Minister Mark Carney have focused on creating economic programmes capable of supporting Canadians for more than two years. Provincial governments are also reaching out directly to American states and preparing their own assistance measures.