– In a major escalation of trade tensions, Canada has imposed new 25% tariffs on a wide range of U.S. imports, effective immediately. The sweeping move impacts nearly $30 billion worth of goods, including steel, aluminum, and numerous consumer products.
The new duties target the same metals—steel and aluminum—that triggered the dispute, but the tariff list extends to dozens of other categories such as orange juice, peanut butter, appliances, and motorcycles.
Canadian officials say the action is a direct response to U.S. tariffs on Canadian metal exports. Prime Minister Mark Carney called it a necessary step to defend national economic interests, vowing the countermeasures will remain until U.S. tariffs are lifted.
The federal government has promised a “dollar-for-dollar” response, signaling a firm stance. Meanwhile, U.S. President Donald Trump appears unwilling to back down, raising concerns of prolonged economic friction between the two allies.
With both sides refusing to blink, the Canada-U.S. trade relationship has entered uncertain territory. Economists warn of rising prices and economic turbulence in both countries if the standoff persists. This is a developing story.