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Canada's retaliatory tariffs set to hit US products as Trump warns of escalation
abcnews.com • • business
Key Points:
- Canada is set to impose retaliatory tariffs as high as 50% on hundreds of U.S. products, including aluminum foil, raincoats, and cheese, targeting about $20 billion worth of goods starting just after midnight Tuesday.
- The tariffs mirror recent U.S. levies and affect nearly 6% of annual U.S. exports to Canada, escalating a trade war that began after failed negotiations and new U.S. tariffs last month.
- U.S. officials, especially from border states, warn the dispute will harm local businesses and consumers, while President Trump has threatened further actions, including blocking sales from Canadian aerospace company Bombardier and increasing tariffs on Canadian cars and auto parts.
- The trade tensions have also sparked symbolic disputes, such as Trump's renaming of Lake Ontario to "Lake America," which Canada rejects, with Prime Minister Mark Carney criticizing the U.S. for its aggressive rhetoric and lack of serious negotiation efforts.
- Despite the current tariffs affecting a small portion of bilateral trade, the potential for escalation poses risks to the significant economic relationship, as Canada is the second-largest U.S. export market with $175.8 billion in goods traded in the first half of 2026.
