Canada's retaliatory tariffs on US goods entered into force at 12:01 a.m. local time on Tuesday. The measures cover products worth 27.6 billion Canadian dollars, or approximately $20 billion, imported from the United States.
The Ottawa government is imposing customs duties of 15%, 25% and 50% as part of dollar-for-dollar countermeasures against the tariffs imposed by the United States under Section 338.
Steel, agricultural and electronic products targeted
The new duties will apply to steel, dairy products, household appliances, agricultural machinery, paper and pulp, and electronic products. Canada said the retaliatory tariffs cover only goods originating in the United States.
Shipments already in transit on the day the measures took effect were exempt from the new duties.
The decision came after trade talks between the two countries ended without an agreement in late August. The administration of U.S. President Donald Trump subsequently imposed 50% customs duties on key Canadian products under Section 338.
Retaliatory tariffs intensify trade dispute
Section 338 is used as a trade provision that gives the U.S. president the authority to impose trade barriers for retaliatory purposes. The United States' earlier measures covered steel, aluminum, lumber and automotive parts.
The dispute between the two neighboring countries intensified as reciprocal import tariffs were introduced one after another. Trump has cited the trade imbalance between the United States and Canada as one of the main reasons for the tariffs and has repeatedly claimed that Ottawa has disadvantaged the United States.
