Canada Starts Tariffs on Roughly 700 U.S. Goods, With Rates as High as 50%
Canada has begun imposing tariffs of 15% to 50% on roughly 700 U.S. products, matching a previous U.S. move that applied tariffs of up to 50% on about $20 billion worth of Canadian goods. According to the report, the Canadian list spans ten major categories, including steel and aluminum, dairy products, home appliances, agricultural machinery, pulp, plastics, electronics, lumber, cosmetics, cheese, and motorcycles, with a total value of about C$27.6 billion, or roughly $19.9 billion.
The report said the dispute could hit exporters in Michigan and Ohio, two states with close trade ties to Canada and political importance ahead of the November midterm elections. It also highlighted risks to U.S. supply chains tied to Bombardier. The Canadian aircraft maker, which Trump had previously targeted, works with more than 2,800 suppliers in the United States. Its Global 7500 business jet relies on wings from Texas, avionics from Iowa, and engines from Indiana.
Former Trudeau government trade adviser Brian Clow said Canada’s aim is not to prolong the trade war but to end it sooner. Still, industry representatives and Oxford Economics warned the conflict may deepen, with Oxford estimating Canada’s output could fall by about 0.3 percentage points versus its baseline scenario if tariffs, retaliation, and federal support spending are all included.
