Canada Retaliatory Tariffs Against U.S. Take Effect

Canada's retaliatory tariffs against the United States have taken effect, covering up to $20 billion in American products.

According to The Guardian, Canada's levies range between 15% and 50%, targeting steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The tariffs come in response to similar Trump administration levies against Canada that came into force on August 22.

In a video address posted on September 8, Canadian Prime Minister Mark Carney detailed a need to become less reliant on trade with the U.S., stating that "no country can ever hold us hostage."

"We have everything we need to pivot and prosper," Carney said.

Trade talks between the U.S. and Canada fell apart in late August, after Carney pulled out of negotiations over what he claimed were "unfair and uneconomic" last-minute demands from the Trump administration. Since then, President Donald Trump has threatened to double U.S. tariffs on Canadian cars and auto parts to 50%, and signed an executive order to rename Lake Ontario "Lake America." 

The day before Canada's retaliatory tariffs kicked in, President Donald Trump also threatened to block U.S. sales from Canadian planemaker Bombardier Aviation, unless the company moves its manufacturing to the United States. Based in Quebec, Ontario, Bombardier's customers operate a combined fleet of more than 5,200 planes, half of which are in service in the U.S. The company's clients include several American commercial airlines, including subsidiaries of Delta Air and American Airlines.