The Latest: Canada strikes back with tariffs on about $20 billion worth of US goods

Canada has implemented up to 50% tariffs on a range of US goods, including steel, furniture and cotton T-shirts, as its retaliatory measures against the United States. The new tariffs will apply to nearly C$28bn ($20bn; £15bn) worth of American products, but fresh fish and lobster were later excluded due to pressure from the seafood industry.

Prime Minister Mark Carney emphasized that Canada seeks a durable trade deal that benefits both nations, but talks have stalled since August. US Trade Representative Jamieson Greer stated that Canada has not shown readiness to resume negotiations, and suggested the US might retaliate by prohibiting imports of Canadian products. The US has already imposed a 25% tax on Canadian cars and trucks, as well as taxes on steel, aluminium and lumber.

As the trade dispute intensifies, businesses in both countries face the challenge of adapting to the new tariffs, which could lead to higher prices for consumers and a potential slowdown in economic growth.