Canada tariffs hit $27.6 billion in U.S. goods

Canada has activated a new round of retaliatory tariffs on a broad list of American imports, intensifying a trade dispute that has already disrupted one of the world’s largest bilateral commercial relationships. The measures apply to $27.6 billion worth of U.S. goods and took effect on Tuesday after negotiations collapsed last month.

Higher duties on metals and consumer goods

The new tariffs span a wide range of products, from dairy and farm equipment to paper, household appliances and electronics. Canadian duties on U.S. steel, aluminum and iron products have been raised to 50%, while furniture and clothing are also facing the highest rate in the package. The overall tariff range runs from 15% to 50%.

Ottawa described the action as a dollar-for-dollar response to U.S. levies on Canadian goods. The finance department said the goal is to shield Canadian workers, producers and manufacturers by making domestic suppliers more competitive against imported American products. Existing counter-tariffs, including a 25% levy on autos, remain in force.

Talks fail as pressure rises

The escalation follows the breakdown of trade talks at the end of August, with both sides blaming each other for the failure to reach an agreement. Officials also publicly disagreed over which issues blocked progress, leaving little sign that the dispute would ease quickly. The latest move comes against a backdrop of increasingly sharp language between Washington and Ottawa.

On Monday, U.S. President Donald Trump called for a boycott of Bombardier, the Canadian aircraft maker, posting on Truth Social: "NO MORE SELLING BOMBARDIER IN THE UNITED STATES!" The comment added to the strain in a relationship that has traditionally been anchored by deep cross-border commerce and integrated supply chains. The two countries trade heavily in sectors such as energy, vehicles, heavy machinery, aircraft, pharmaceuticals, jewelry, furniture, clothing and food and drink.

The scale of the trade flows helps explain why the dispute matters for markets on both sides of the border. The United States exported $333.6 billion of goods to Canada and imported $381.9 billion from its northern neighbor. With tariffs now covering more sectors and higher rates applied to key industrial goods, companies exposed to cross-border manufacturing and distribution face another round of uncertainty.

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