Mark Carney Imposes Retaliatory Tariffs on U.S. Goods as Trade Negotiations Collapse
Canadian Prime Minister Mark Carney implemented retaliatory tariffs on nearly C$28bn ($20bn) of U.S. goods starting Tuesday. The counter-tariffs, which range from 15% to 50%, apply to various products including steel, furniture, clothing, and electronics. These measures were taken after trade negotiations between Canada and the United States collapsed in late August. President Trump imposed new 50% tariffs on U.S. goods last month, which do not allow for USMCA exemptions. In response, the administration announced the counter-tariffs as a "dollar-for-dollar" retaliation. While both countries seek a trade deal, officials from both sides have traded blame for the collapse of talks. Mark Carney stated that Canada is ready to sign a deal when the Americans are ready. Conversely, U.S. trade representative Jamieson Greer expressed that the ball is in Canada's court, noting that the U.S. offered a good deal that Canada turned down. Jamieson Greer also cautioned that the U.S. might ban some Canadian products entirely. President Trump also threatened to halt business with the airplane maker Bombardier unless it moves manufacturing south. Economists warn that the new tariffs will increase prices for consumers on everyday goods. The Canadian Chamber of Commerce has urged the Carney government to take a surgical approach to avoid endless escalation.
Sources
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US-Canada tariffs: Canada braces for prolonged trade war as counter-tariffs on US take effect
BBC
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Canada’s retaliatory tariffs take effect after U.S. trade talks stall
NBC News