{"id":8362,"date":"2026-09-08T05:36:50","date_gmt":"2026-09-08T05:36:50","guid":{"rendered":"https:\/\/metrotransitreview.com\/?p=8362"},"modified":"2026-09-08T05:36:50","modified_gmt":"2026-09-08T05:36:50","slug":"canadas-retaliatory-tariffs-take-effect-as-us-trade-talks-stall","status":"publish","type":"post","link":"https:\/\/metrotransitreview.com\/?p=8362","title":{"rendered":"Canada’s retaliatory tariffs take effect as US trade talks stall"},"content":{"rendered":"
\n

Canada\u2019s retaliatory tariffs on US goods took effect \u200bjust after midnight on Tuesday as Prime Minister Mark Carney increased economic pressure on his country\u2019s \u200cbiggest trading partner after negotiations\u00a0collapsed last month, intensifying an 18-month-old trade war.<\/p>\n

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The\u00a0counter-tariffs\u00a0cover $20 billion of US goods, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics.<\/p>\n

The dollar-for-dollar retaliation marks an escalation in the dispute between the neighboring \u200bcountries, and US and Canadian officials have traded blame for scuttling a deal that seemed close to \u200bfruition two weeks ago. <\/p>\n

The rising tensions create uncertainty about the broader US-Mexico-Canada free trade \u2060agreement, which is up for annual reviews after US President\u00a0Donald Trump\u00a0declined to extend it for another decade.<\/p>\n

\u201cWhat we \u200bare worried about is an escalatory spiral,\u201d said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and \u200ba member of Carney\u2019s advisory committee on bilateral US economic relations.<\/p>\n

\u201cBut at the same time, we totally understand that the prime minister needs to find areas of leverage,\u201d Harvey said.<\/p>\n

US TARIFFS HIT CANADIAN WINE, FURNITURE, DAIRY<\/h2>\n

Trump\u2019s\u00a0tariffs implemented\u00a0last month hit sectors including wine, furniture, \u200bdairy products, cement, clothing, fishing rods and hockey equipment, covering $20 billion, or 5%, of Canadian exports to the US.<\/p>\n

According \u200bto Canadian and US government data, Canada has\u00a0shipped almost 68%\u00a0of total exports to the US this year, out of which \u200croughly 80% \u2060moved duty-free due to exemptions under the USMCA pact. Protections under the agreement have provided the domestic economy some resilience.<\/p>\n

The new tariffs, imposed under a Depression-era US law, do not allow Ottawa to exercise USMCA exemptions.<\/p>\n

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Concerns about the USMCA\u2019s future have fuelled uncertainty about investment and growth, as Canada wages a trade war against an economy 13 times its \u200bsize.<\/p>\n

Polls show Carney has\u00a0broad support \u200bfrom Canadians, but it \u2060could\u00a0disappear within months\u00a0as the consequences of the trade war sink in, according to political analysts.<\/p>\n

Just 20% of Americans approved of Trump\u2019s tariffs on Canadian goods, a\u00a0Reuters\/Ipsos\u00a0poll \u200bfound.<\/p>\n

Carney\u00a0said last week\u00a0his government was ready to sign a trade deal that benefits \u200bboth countries.<\/p>\n

Trump\u00a0threatened\u00a0last \u2060month to raise US tariffs on all cars, trucks and automotive parts from Canada to 50% starting January 1, and signed an executive order renaming\u00a0Lake Ontario\u00a0as Lake America.<\/p>\n

\n<\/div>\n

A government source said there are currently no talks between the two sides \u2060among \u200bministers or government officials.<\/p>\n

\u201cThe Canadian government needs to keep channels open to \u200bthe United States and not go overboard in terms of rhetoric and reacting to the rhetoric from the American side, while waiting for the \u200bAmerican decision-making process to come back to economics,\u201d Harvey said.<\/p>\n

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Canada\u2019s retaliatory tariffs on $20 billion of US goods took effect Tuesday after trade talks collapsed, hitting products with duties up to 50%.<\/p>\n","protected":false},"author":1,"featured_media":8361,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-8362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nCanada's retaliatory tariffs take effect as US trade talks stall - Metro Transit Review<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/metrotransitreview.com\/?p=8362\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada's retaliatory tariffs take effect as US trade talks stall - 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