‘Costs Are Going to Go Up’: Canada Slaps U.S. with Retaliatory Tariffs 

Canada will impose retaliatory tariffs on U.S. goods that match Washington’s levies “dollar for dollar”, after trade talks between the two countries collapsed this week. 

Canada’s countermeasures, set to take effect September 8, will target U.S. steel, dairy, appliances, farm equipment, pulp and paper and electronics, according to Al Jazeera. 

Canadian Prime Minister Mark Carney announced the move in Ottawa on Saturday after U.S. President Donald Trump imposed a 50% tariff on about $20 billion worth of Canadian goods, covering more than 500 product categories. 

The affected goods include alcohol, dairy products, technology, hockey equipment, wood products and consumer goods. 

The new U.S. tariffs also affect some products previously covered by the US-Mexico-Canada Agreement. Carney said the Trump administration had sought to restrict Canada’s ability to strike new trade deals and made demands involving Quebec’s French language and culture. 

Trade experts warn Canadian businesses could face higher costs, weaker demand and job losses as tariffs make their products more expensive in the U.S. market. About 73% of Canadian exports go to the U.S. 

American businesses and consumers could also feel the impact as higher import costs filter through to prices.

Carney is now looking to diversify Canada’s trade, courting new partners in Asia and Europe as the country tries to reduce its dependence on its largest trading partner.