Trade war deepens as Canada slaps retaliatory tariffs on US goods

Canada’s retaliatory tariffs on U.S. goods took effect just after midnight on Tuesday as Prime Minister Mark Carney escalated economic pressure on America following the collapse of trade negotiations last month, according to a report by Newsmax.

The counter-tariffs target $20 billion worth of U.S. goods, with duties ranging from 15% to 50% on products including steel, furniture, clothing and electronics, marking a dollar-for-dollar response in the 18-month-old trade dispute.

Officials from both countries have traded blame for derailing a deal that appeared close two weeks ago, raising uncertainty over the future of the U.S.-Mexico-Canada Agreement after President Trump declined to extend it.

Michael Harvey of the Canadian Agri-Food Trade Alliance warned of an “escalatory spiral,” while noting no talks are currently ongoing between both governments.