Canada's retaliatory tariffs on a range of U.S. goods took effect Tuesday, with no immediate signs of a resolution to the escalating trade dispute. The new tariffs apply to nearly C$28 billion (approximately $20 billion) worth of American products, including steel, furniture, and cotton T-shirts, with rates as high as 50%.
While fresh fish and lobster were initially included on the list, Canada later removed them following objections from its seafood industry, illustrating the delicate balancing act the country faces in its response to its largest trading partner. Officials on both sides have expressed a desire to reach a deal, but negotiations have been stalled since collapsing in late August.
Prime Minister Justin Trudeau stated last week that Canada is seeking a "durable" agreement that serves the best interests of both nations. "We're ready to sit down and strike that deal when the Americans are ready," he told reporters.
U.S. Trade Representative Jamieson Greer, however, indicated on Thursday that the onus is on Canada to resume talks. "We offered them the best deal, they looked at it square in the face and turned around," Greer said in an interview with Fox News, noting that communication has been minimal since the talks broke down. Greer also cautioned against retaliation, suggesting the U.S. might respond by banning certain Canadian imports.
This latest escalation follows a series of contentious exchanges. President Donald Trump on Monday threatened to halt all U.S. business with Canadian aircraft manufacturer Bombardier unless it moved its manufacturing operations south. Bombardier is a significant contributor to Canada's economy, generating over C$7 billion to the country's annual GDP in 2024, according to a report by PwC commissioned by the company.