Canada’s retaliatory US tariffs take effect as trade dispute grows

Tensions between Canada and the US have intensified in recent weeks. Photograph: Ari Saperstein/EPA View image in fullscreen Tensions between Canada and the US have intensified in recent weeks. Photograph: Ari Saperstein/EPA Canada’s retaliatory US tariffs take effect as trade dispute grows Counter-measures covering several sectors come after Trump announced 50% tariffs on Canadian goods Canada’s retaliatory tariffs on billions of dollars’ worth of American imports have come into effect, escalating a trade fight that has been marked . The tariffs took effect at 12.01am on Tuesday, and range from 15% to 50% and apply to products covering $20bn in imports from the US. The measures target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics – industries that have been most affected . The retaliatory tariffs come “as a result of the United States’ decision to impose a 50% tariff on $20bn of Canadian goods effective August 22”, the Canadian government said. “Canada’s counter-measures do not apply to US goods that are in transit to Canada on the day on which they come into force,” it added. Last month, Trump announced a new 50% tariff on cars and raw materials from Canada. He accused the country of “ripping off” the US “for years”. The US tariffs hit items such as hockey sticks and cement, affecting about 5.5% of Canadian exports to the US. Since then, tensions between Canada and the US have intensified, with Carney last week urging the Trump administration to “start being serious” as the trade dispute has increasingly spilled into broader diplomatic tensions. Trump and senior US officials have repeatedly criticized Canada and its leadership, while Trump has taken a series of symbolic digs at Canada including signing an executive order renaming Lake Ontario “Lake America” – which Canadians have rejected. On Monday, Trump threatened to block sales of Canada’s Bombardier Aviation in the US, unless the Quebec-based plane maker moves manufacturing to the US. “No more selling Bombardier in the United States!” Trump posted in all caps on his Truth Social platform, though he did not specify how he would achieve a sales halt. Thousands of Bombardier aircraft currently operate in US airlines’ domestic fleets. In a statement on Monday, the aerospace company touted its creation of “tens of thousands of jobs across the United States”, with “direct employment” in more than 20 states including Kansas, Texas, Arizona and California. The company also noted that it spent more than $2.5bn annually with suppliers, and said its supply chain was “made up of approximately 2,800 American companies across 47 states”.