Canada braces for prolonged trade war as counter-tariffs on US take effect
Canada has implemented retaliatory tariffs on $20 billion worth of US goods following the collapse of trade negotiations. Both nations remain at an impasse, with officials trading blame and threatening further economic measures, including potential import bans.
Why it matters
The escalating trade conflict between the US and Canada threatens to disrupt supply chains and impact the economic stability of both nations.
Canada's retaliatory tariffs on a range of US goods came into effect on Tuesday, with no sign of a trade deal on the horizon.
The counter-tariffs will apply to nearly C$28bn ($20bn; £15bn) worth of American products, from steel to furniture to cotton T-shirts, and will be as high as 50%.
Fresh fish and lobster were also on the list, but Canada later omitted them after pushback from its seafood industry - a sign of the tricky balance it has to strike as it retaliates against its largest trading partner.
Both US and Canadian officials have said they would like to strike a deal, but no movement has been made to resume talks after they collapsed in late August.
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