Canada braces for prolonged trade war as counter-tariffs on US take effect
Canada has initiated retaliatory tariffs on US goods following the collapse of trade negotiations, signaling a prolonged trade war. Prime Minister Mark Carney emphasized the need for economic diversification despite the immediate costs to Canadian workers.
Why it matters
Escalating trade tensions between major North American partners threaten supply chains and consumer prices across the continent.
Figure caption, Watch: How much can Canada fight back in its trade war with the US?
Prime Minister Mark Carney has said that Canada's pivot away from the US as its largest trading partner "will come at a cost", as a wave of Canadian retaliatory tariffs on American goods come into force.
In a video address, Carney added that the counter-tariffs against the US "are necessary to protect our workers".
Canada's levies will apply to nearly C$28bn ($20bn; £15bn) of American products, from steel to furniture to cotton T-shirts, and will be as high as 50%.
Both US and Canadian officials have said they would like to strike a deal, but no new talks have been scheduled since negotiations collapsed in late August.
In Tuesday morning's 15-minute video address, Carney said his country's main focus was to diversify its trade relationships and build its economy.
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