Trump imposes 50% duties on over 550 Canadian products, sparking retaliation plans
The United States activated a 50% tariff on more than 550 Canadian items, covering roughly $20 billion in trade, and Canada has vowed a dollar-for-dollar response starting September 8.
A fresh round of U.S. trade action took effect on Saturday, imposing a 50% tariff on more than 550 Canadian products, ranging from natural honey and plant bulbs to smartphones, golf gear and cosmetics, amounting to roughly $20 billion in value. The duties represent about 5% of the $381.92 billion Canada shipped to the United States last year and will be paid by importers, who typically shift the expense to shoppers. President Donald Trump justified the measure under a rarely used 1930 tariff provision, accusing Canada of unfair treatment of U.S. firms, especially in the auto sector.
In response, Prime Minister Mark Carney pledged a dollar-for-dollar counter-tariff beginning September 8, aimed at U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Ontario Premier Doug Ford warned that the province stands ready to restrict electricity and critical minerals if the dispute widens. Trump further warned that, from January 1 2027, Canadian cars, trucks, parts and steel could face the same 50% rate, intensifying the trade standoff.
Why it matters
The tariffs could raise prices for everyday items and deepen a trade conflict between the U.S. and Canada.
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