Canada to impose retaliatory tariffs on US imports as trade dispute escalates

Canada announced on Tuesday that it will impose retaliatory tariffs on a range of American imports worth C$27.6 billion, a move that follows President Donald Trump’s recent decision to levy up to 50 percent duties on Canadian goods. The new Canadian measures are set to take effect at 12:01 a.m. local time and will span tariffs from 15 percent to 50 percent, targeting sectors that have been most affected by the U.S. trade actions.

The tariffs will cover products in steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, reflecting a broad response to the U.S. pressure on Canada’s key export industries. The escalation comes amid heightened tensions between President Trump and Canadian Prime Minister Mark Carney, as both governments seek to protect domestic markets while signaling willingness to confront each other’s trade policies.

Analysts expect the reciprocal duties to deepen the trade dispute between the United States and its largest trading partner, potentially prompting negotiations or further measures. Both sides have indicated that the tariffs are intended as leverage in ongoing discussions, and the economic impact on the affected industries will likely be monitored closely in the coming weeks.