Canada's counter tariffs take effect on various US goods

Canada's retaliatory tariffs on $27.6 billion in US imports, including steel, aluminum and dairy products, have officially kicked in amid escalating tensions between the two North American neighbors. These duties, ranging from 15% to 50%, were imposed in response to US President Donald Trump's 50% tariffs on Canadian goods, which he deemed as discriminatory against US industries.

This trade war has negatively affected approximately 5.5% of Canadian exports to the US, impacting items such as hockey sticks and cement. US President Trump threatened to halt sales of Bombardier Aviation in the United States, but did not specify how this would be accomplished. Bombardier, a Quebec-based plane maker that employs thousands across the US, countered by highlighting its significant contributions to the US economy.

While the overall impact on Canada's economy is modest, analysts note that the trade war has a more significant effect on the Central Canadian manufacturing sector. Despite ongoing negotiations, both sides have been unable to reach an agreement, continuing to exchange accusations and insults, including the renaming of Lake Ontario as "Lake America" by President Trump.