OTTAWA — Canada’s retaliatory tariffs on nearly $28 billion worth of American goods took effect Tuesday, escalating the latest trade dispute between Canada and the United States.
The measures are Ottawa’s response to 50 per cent U.S. tariffs on Canadian products imposed last month by President Donald Trump after bilateral trade negotiations broke down.
Canada’s countermeasures target a wide range of American products, including dairy goods, steel and aluminum products, softwood lumber, plywood, cosmetics, sunscreen and other consumer goods. Some products face tariffs as high as 50 per cent.
Prime Minister Mark Carney said Canada could not accept Washington’s demands and accused the U.S. administration of attempting to hurt and divide Canadians. He said the country would respond by strengthening domestic manufacturing and diversifying international trade.
The dispute intensified further after Trump threatened to restrict Bombardier aircraft sales in the United States unless more production takes place there. Bombardier responded by highlighting the thousands of jobs it already supports at more than 20 U.S. locations.
Carney has meanwhile emphasized a “build Canadian” approach. During a recent visit to Thunder Bay, he announced a major contract under which passenger rail cars for VIA Rail will be manufactured by Alstom in Canada rather than sourced from the United States.
Conservative Leader Pierre Poilievre condemned Trump’s tariffs and rhetoric but called on the federal government to provide greater transparency about the economic consequences of Canada’s counter-tariffs.
Business groups have also warned that the escalating trade battle could increase costs for consumers and put additional pressure on small businesses.
With Carney preparing to address the European Parliament next week, political observers say Canada’s response to Washington is attracting international attention and could influence how other countries deal with U.S. trade pressure.