Canada has announced a series of retaliatory tariffs on U.S. goods as the trade war between Ottawa and Washington continues to escalate.
“We will use every means necessary to support our workers, businesses and industries,” said François-Philippe Champagne, Canada’s finance minister, adding:
“Canada will respond to the newly imposed U.S. tariffs in a proportional and targeted manner, dollar for dollar, tariff for tariff, matching Washington’s measures.”
Canada’s decision came after trade talks between the two countries broke down and 50% U.S. tariffs came into effect, affecting approximately $20 billion worth of Canadian goods.
The dispute between the two countries erupted after the United States accused Canada of providing unfair government support to Canadian lumber exports through its provincial forestry policies. Washington is also unhappy with the fact that the Canadian government maintains full control over the dairy market through a special regulatory system. The U.S. government also has concerns about the sale of American alcoholic beverages at the provincial level, as Canadian provinces have introduced certain restrictions and bans.
The dispute also involves tariffs on Canada’s heavy machinery industry. According to the United States, any satisfactory agreement would limit Canada’s right to conclude trade agreements with other countries in accordance with its own interests.
Donald Trump is now threatening that if no agreement is reached, he will double the U.S. tariffs on Canadian vehicles, raising them to 50% starting next January.
