Canadian and U.S. trade officials are expected to speak Tuesday as Ottawa’s retaliatory tariffs on nearly $28 billion worth of American imports come into force, marking a fresh escalation in the trade dispute between the two countries.
Canada’s targeted counter-tariffs took effect shortly after midnight, imposing duties ranging from 15 to 50 per cent on $27.6 billion worth of U.S. goods. Ottawa says the measures are designed as a dollar-for-dollar response to the latest U.S. tariffs on Canadian products.
The Canadian measures follow the collapse of bilateral trade negotiations last month and the subsequent introduction of additional tariffs by the White House.
U.S. Trade Representative Jamieson Greer said Tuesday morning that Washington could consider further tariffs on Canadian goods as early as today. Greer is also expected to speak with Canada-U.S. Trade Minister Dominic LeBlanc as both governments assess their next steps.
The possibility of another U.S. response raises the risk of a widening cycle of tariffs and counter-tariffs between two economies with deeply integrated supply chains.
Prime Minister Mark Carney, meanwhile, acknowledged that reducing Canada’s economic dependence on the United States will carry significant costs. In a new video message, Carney said the transition would be difficult but argued that Canada needs to diversify its economic relationships and strengthen its resilience.
Ottawa’s latest tariff package comes as businesses and consumers prepare for the potential impact of higher import costs, while uncertainty remains over whether Canada and the United States can return to negotiations and prevent further escalation.
