Canada has announced new counter-tariffs of between 15 and 50 per cent on selected US goods, escalating the trade dispute between the two neighbouring countries.
The Canadian measures will take effect on September 8, following the introduction of new US tariffs on Canadian products.
The counter-tariffs will affect a range of American goods, including steel, aluminium, dairy products, appliances, electronics, fish and industrial equipment.
Canada said US steel and aluminium products already facing a 25 per cent duty will now be subject to 50 per cent tariffs, while other products will face duties of 25 per cent or 15 per cent.
Ottawa has also announced a $5.4 billion aid package to support Canadian companies and workers affected by the trade dispute.
Finance Minister François-Philippe Champagne said Canada would respond in a “proportionate, targeted and strategic way.”
The latest measures come after trade negotiations between Ottawa and Washington failed to produce an agreement. US President Donald Trump has also threatened to increase tariffs on Canadian automobiles, raising fears of further retaliation.
Canadian officials have warned that Ottawa could take additional measures if Washington escalates the dispute.
The growing confrontation could have significant consequences for both economies, as the United States remains Canada’s largest trading partner, while Canada is also one of America’s most important export markets.
With both sides threatening further action, concerns are growing that the dispute could develop into a wider US-Canada trade war.
AFP
