Canada's counter-tariffs on US goods take effect as trade war heats up

On Tuesday, Canada began imposing retaliatory tariffs on billions of dollars' worth of US products, following an escalating trade war between the neighboring nations. The duties, which range from 15% to 50%, apply to an import value of $27.6 billion (US$20 billion), primarily affecting steel, aluminum, and dairy goods. However, Canada removed certain seafood products from the initial list of targeted items.

This move comes weeks after US President Donald Trump imposed a 50% tariff on Canadian goods, citing discriminatory treatment against US industries such as alcohol, automobiles, and dairy. The US tariffs impacted roughly 5.5% of Canadian exports to the United States, including items like hockey sticks and cement.

In a provocative statement, Trump threatened to block sales of Bombardier Aviation in the United States unless the Quebec-based plane manufacturer relocates manufacturing to the US. Despite Bombardier's significant contributions to the US economy, including job creation and annual supplier spending, the aerospace company has vowed to remain in Canada.

The trade war has strained diplomatic relations between Canada and the United States, with both sides continuing to exchange harsh criticisms. While the US Treasury Secretary maintains that a trade war is not feasible with a country 13 times larger than the US, tensions remain high. Recent comments suggesting the renaming of Lake Ontario as "Lake America" have further fueled anger in Canada.