Canada has announced retaliatory tariffs on about $20 billion worth of U.S. goods after trade negotiators failed to reach a deal that would have stopped new U.S. tariffs.
Key facts
- Canada will impose new tariffs on about $20 billion of U.S. imports.
- The move follows the failure to clinch a trade deal with the United States.
- Canadian negotiators left the U.S. last week without an agreement.
- The tariffs come as a trade war between the two neighbours intensifies.
Canada has announced it will impose new retaliatory tariffs on approximately $20 billion worth of U.S. goods, escalating a trade dispute between the two neighbouring countries, according to CNBC and Sky News.
The measures come after Canadian trade negotiators left the United States last week without reaching a deal, CNBC reported. That agreement would have been aimed at preventing President Donald Trump’s new tariffs from taking effect.
Sky News reported that Canada said it will impose the new tariffs on U.S. imports as the trade war between the two countries heats up.
The dispute reflects rising tensions between the longtime trading partners, with the failure of negotiations prompting Canada to respond with its own duties on American products.
Neither source provided a detailed breakdown of which specific U.S. goods would be affected or when the Canadian tariffs would take effect.
The developments mark a further hardening of positions on both sides of the border as the two governments trade tariff measures.
Why it matters
The United States and Canada are among each other's largest trading partners, so escalating tariffs can raise costs for businesses and consumers on both sides of the border. A deepening trade war carries risks for supply chains, jobs and prices across North America.
Frequently asked questions
How much in U.S. goods will Canada's tariffs cover?
Canada's retaliatory tariffs will apply to about $20 billion worth of U.S. imports, according to CNBC and Sky News.
Why is Canada imposing these tariffs?
The tariffs follow the failure of trade negotiators to reach a deal that would have stopped President Donald Trump's new tariffs from taking effect, according to CNBC.
Did Canada and the U.S. reach a trade deal?
No. CNBC reported that Canadian trade negotiators left the U.S. last week without clinching an agreement.