Canada plans tariffs on $20 billion of US goods in retaliation
Canada plans to impose tariffs on $20 billion of US goods, mostly mirroring US levies with the biggest impact on steel and aluminum, in retaliation for new US actions.
Canadian officials announced they plan to impose tariffs on $20 billion of US goods in retaliation for new US levies.
Canadian officials announced they plan to impose tariffs on $20 billion worth of US goods in retaliation for new US levies.
The tariffs will mostly mirror President Donald Trump’s, with the heftiest affecting steel and aluminum. “When the United States asked too much and offered too little, we chose to stand up for Canadians,” said François-Philippe Champagne, Canada’s finance minister.
The move heightens the stakes for congressional Republicans in states that border Canada, many of whom are already taking heat for rising prices ahead of midterms. “If you are a Midwestern-northern state with a big auto industry, or you rely on Canadian tourism … I can’t imagine this is helpful,” Ernst & Young’s Blake Harden, former GOP trade counsel for the House Ways and Means Committee, told Semafor. “I don’t think this is the thing they really want to be talking about.” It could be worse: Ontario Premier Doug Ford said earlier this week that “everything on the table,” including surcharges on electricity Canada exports to the US.
That would hit states like Maine, where Republican Sen.
Susan Collins is in a close reelection race, especially hard.
Still, voters nationally are already grappling with higher energy and technology costs, which may make them hypersensitive to any additional price increases. “Everything this year just feels more expensive,” Center on Budget and Policy Priorities Chief Economist Gbenga Ajilore told Semafor. “Now, that’s just going to make it even more expensive.” Canada announced a $7.5 billion aid package for companies affected by the trade war, suggesting Ottawa is preparing for a prolonged fight.
But Canadian tariffs won’t take effect till Sept.
8, which gives officials some time to restart negotiations. “It does create some space,” Harden said. “I think the hope, on all sides, is that the two governments get back to the table.”