TORONTO (AP) — Canada announced tariffs on approximately $20 billion worth of U.S. goods on Tuesday, responding to recent tariffs imposed by the U.S. government. The tariffs are set to affect hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment, with rates ranging from 15% to 50%. Canadian Prime Minister Mark Carney stated that U.S. demands could undermine key Canadian industries and limit the country's autonomy. Historian Robert Bothwell noted that Carney's stance has become symbolic of resistance against U.S. pressure.
The tariffs, which Canada claims match U.S. tariffs dollar for dollar, are expected to take effect at 12:01 a.m. Tuesday under an executive action known as an order in council. This move covers about 6% of the $333.6 billion worth of goods that the U.S. exported to Canada last year. RBC Economics indicated that while the measures may not significantly impact U.S. growth overall, they could adversely affect certain businesses.
In addition to tariffs, Canada has imposed restrictions on U.S. alcohol sales in eight of its ten provinces, leading to a reported decline of over 70% in U.S. spirits exports to Canada.
Tensions escalated following the collapse of Canada-U.S. trade talks on August 21, with U.S. President Donald Trump making various threats against Canada, including a ban on Bombardier aircraft sales unless they manufacture in the U.S. Trump has also warned that Canada’s economy could suffer severe consequences if Carney continues to oppose him.
The ongoing trade conflict has led to increased public support for Carney in Canada, as citizens have reduced travel to the U.S. and boycotted American products. Carney has expressed willingness to resume talks when the U.S. adopts a more serious approach.
Political scientists have noted that the trade war has deepened distrust among Canadians towards the U.S., with experts suggesting that Canada-U.S. relations may never return to their previous state. Carney has emerged as a prominent figure advocating for resistance against U.S. trade policies, recently addressing the World Economic Forum in Davos, where he highlighted the coercive tactics employed by larger powers against smaller nations.
Carney is scheduled to speak at the European Parliament next week, further solidifying his role as a global voice against U.S. trade practices. Analysts suggest that if Canada’s approach proves successful, it could serve as a model for other nations facing similar pressures.