Canada braces for prolonged trade war as counter-tariffs on US take effect

On Tuesday, Canada implemented retaliatory tariffs on a variety of US goods, marking the onset of a potential prolonged trade war. With no indications of a trade deal in sight, the counter-tariffs will impact nearly C$28 billion ($20 billion; £15 billion) worth of American products, ranging from steel to furniture to cotton T-shirts.

Additionally, fresh fish and lobster were included on the list, but Canada subsequently excluded them following criticism from its seafood industry, highlighting the delicate tightrope walk required in its efforts to retaliate against its largest trading partner.

Both US and Canadian officials have expressed a desire to reach a mutually beneficial deal, yet no progress has been made to resume negotiations since the previous talks stalled in late August. Speaking to reporters, Prime Minister Mark Carney emphasized Canada's ongoing pursuit of a "durable" agreement that serves the interests of both nations. He clarified, "We're ready to sit down and strike that deal when the Americans are ready."

U.S. Trade Representative Jamie Jamieson Greer countered that the agreement presented to Canada was the most favorable, yet Canada rejected it. Greer conveyed this sentiment in an interview with Fox News, stating that there has been minimal communication with Canadian officials since the talks broke down. He urged against retaliation and hinted that the US might respond by prohibiting the import of certain Canadian products.

Meanwhile, President Donald Trump vowed on Monday to suspend all U.S. business with Canada-based aircraft manufacturer Bombardier unless the company relocated its manufacturing operations south of the border.