Canada imposes CAN$27.6B tariffs on US goods

Ottawa levied retaliatory duties on CAN$27.6 billion ($20 billion) in American imports early Tuesday, matching Washington's Section 338 tariffs "dollar for dollar" as cross-border trade tensions mounted. The measures entered into force at 12:01 a.m. local time (0401GMT), subjecting strategic sectors including steel, dairy products, household appliances, agricultural machinery, pulp and paper products, and electronic goods to additional charges.

Canadian authorities set tariff rates at 15%, 25% and 50% depending on the category of US merchandise. Officials emphasized that the duties apply exclusively to goods of American origin and exclude cargoes already en route when the policy took effect.

Bilateral negotiations collapse

The move comes after bilateral negotiations collapsed in late August, prompting the Trump administration to slap 50% tariffs on Canadian steel, aluminum, timber and auto parts under Section 338. The US statute grants the president authority to erect retaliatory trade barriers, and Washington's action triggered Ottawa's reciprocal response.

Trump has consistently lambasted the trade deficit with Canada, citing it as the primary justification for punitive duties while charging that Ottawa is "ripping off" the United States. The successive waves of import taxes and countermeasures have sharply escalated the conflict between the longtime trading partners.