World Economy

Canada Retaliates With $20B in Tariffs Against U.S. Goods

Canada imposed tariffs on approximately $20 billion worth of American products Tuesday, matching U.S. duties dollar-for-dollar and rate-for-rate in an escalating trade dispute. The levies, implemented through executive action, affect hundreds of items including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment at rates of 15%, 25% or 50%. The figure represents roughly 6% of the $333.6 billion in U.S. exports to Canada annually. Prime Minister Mark Carney framed the action as defensive, arguing American demands threaten key Canadian industries and sovereignty. RBC Economics assessed the tariffs would likely spare broader U.S. economic growth but could damage specific sectors. Beyond tariffs, eight Canadian provinces maintain restrictions on U.S. spirits sales, with exports declining over 70% year-over-year since restrictions took effect.