OTTAWA, Canada: Canada’s retaliatory tariffs on $20 billion of U.S. goods took effect on September 8 after trade negotiations between the two countries collapsed last month.
The duties range from 15% to 50% and cover products including steel, furniture, clothing and electronics, Reuters reported.
Prime Minister Mark Carney’s government imposed the measures in response to U.S. tariffs introduced last month. Those duties covered $20 billion, or about 5%, of Canadian exports to the United States, including wine, furniture, dairy products and clothing.
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Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, said businesses were concerned about an escalating cycle of retaliation. However, he said he understood Ottawa’s need to seek leverage in negotiations.
Canada has sent nearly 68% of its total exports to the United States this year, according to government data cited by Reuters. Roughly 80% of those shipments moved duty-free under the United States-Mexico-Canada Agreement.
Uncertainty has also increased around the future of the USMCA after U.S. President Donald Trump declined to extend the agreement for another decade.
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Carney said last week that Canada remained ready to sign a deal that would benefit both countries. However, a Canadian government source told Reuters that ministers and officials were not currently holding negotiations.
