US hit $20 billion of Canadian goods with new 50% tariffs
Why it matters: Canada pledged dollar-for-dollar retaliation, deepening a rupture that could shake the North American trade pact.
The United States imposed new 50% tariffs early Aug. 22 on about $20 billion worth of Canadian imports after last-ditch trade talks in Washington broke down, and Canada moved to retaliate in kind. The measures affect roughly 5% of Canada’s annual exports to the US and apply even if goods qualify for preferential treatment under the US-Mexico-Canada Agreement. Prime Minister Mark Carney halted negotiations and ordered Canadian negotiators back to Ottawa after what he called unfair, last-minute US changes. The dispute adds to existing US tariffs on steel, lumber and automobiles, threatening Canada’s fragile recovery and further straining one of the world’s biggest trading relationships.