Canada Claps Back at Trump With Retaliatory Tariffs on More Than $20 Billion of US Goods, Hitting Steel, Milk and More

Canada’s new tariffs on U.S. imports, ranging from 15% to 50%, took effect just after midnight ET on Tuesday amid the ongoing trade tussle between the two neighboring countries.

A wide array of U.S. products, including milk, perfume, video game consoles, golf clubs, fishing rods, steel, aluminum, and clothing like men’s and women’s coats, will now face a hefty 50% tariff.

Other goods such as cheese, carpets, and certain household appliances like stoves and air conditioners will be subject to 25% tariffs.

Canada initially planned to impose 25% tariffs on some U.S. seafood but removed them after objections from the lobster industry.

Some of the stocks to watch out for include Nucor Corp. (NYSE:NUE), Deere & Co. (NYSE:DE), Caterpillar Inc. (NYSE:CAT), Walmart Inc. (NASDAQ:WMT) and Target Corp. (NYSE:TGT)

Canada-U.S. Trade War Escalates

Canada announced the tariffs two weeks ago, after trade talks collapsed, following the Trump administration’s 50% duties on $27.6 billion of Canadian goods. Ottawa pledged to match the U.S. tariffs "dollar for dollar." The tariffs affect only a small share of the more than $700 billion in annual U.S.-Canada trade last year, as per U.S. government figures, but mark a sharp escalation in tensions between the two allies.

On Sunday, President Donald Trump criticized the exchange rate imbalance between the U.S. and Canadian dollars, and called the U.S.-Canada dollar exchange-rate imbalance "unacceptable" as trade tensions escalate. His remarks came ahead of Canada’s retaliatory tariffs, while Prime Minister Mark Carney remains open to renewed trade negotiations with Washington.

Economists Clash Over Canada Tariffs

Economist Peter Schiff criticized Carney’s retaliatory tariffs on U.S. goods, calling them “may be good politics” for Carney but “bad economics” for Canada.

On the other hand, economist Justin Wolfers said that the U.S.-Canada trade war is difficult to resolve because Trump is challenging an existing USMCA agreement. He argued that the dispute is not just about economics but also about national sovereignty and political survival.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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