Canada braces for prolonged trade war as counter-tariffs on US take effect — SkimNews
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- Canada's retaliatory tariffs on US goods took effect Tuesday, targeting nearly C$28bn ($20bn; £15bn) of American products — from steel and furniture to cotton T-shirts — at rates as high as 50%
- Canada removed fresh fish and lobster from its tariff list after pushback from its seafood industry, illustrating the delicate balance of retaliating against its largest trading partner
- US Trade Representative Jamieson Greer said the US offered Canada its "best deal" and Canada "turned around" on it, while warning the US might ban imports of some Canadian products in response
- President Trump threatened to halt all US business with Bombardier unless the Canadian airplane maker moved manufacturing south; Bombardier contributes over C$7bn to Canada's annual GDP per a PwC-commissioned report
- Canada's economy showed early resilience — GDP grew 3.3% in Q2 and 181,000 jobs were gained April to July — but approximately 41,000 jobs were lost in August as US tariffs took effect and trade talks collapsed
- Prime Minister Mark Carney is pushing to diversify trade away from the US, with July figures showing the share of US-bound Canadian exports dropping to 66% from a pre-trade-war average of 75%
- The Canadian Chamber of Commerce urged a "surgical" approach to retaliation, with CEO Candace Laing saying businesses "are preparing for this trade dispute to last"
Why it matters: The world's largest bilateral trading relationship at nearly $900bn is now locked in mutual retaliation with no talks scheduled, meaning American and Canadian consumers will pay more on everyday goods like clothing, food, and furniture while roughly 41,000 Canadian jobs were lost in August alone.
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