Canada to impose 15-50% tariffs on US goods Tuesday
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Canada will impose tariffs of 15% to 50% on hundreds of US products on Tuesday, Prime Minister Mark Carney's government said. The move targets steel, motorcycles, cosmetics and cheese, hitting exporters in Michigan and Ohio. The tariffs come after weeks of failed negotiations with the Trump administration.
Key Facts
- Canada will raise tariffs on many US steel items to 50% from 25% on Tuesday.
- The tariffs will apply to consumer goods including motorcycles, cosmetics and cheese.
- US and Canadian negotiators had reached a preliminary deal on Aug. 18, but it collapsed within days.
- Treasury Secretary Scott Bessent compared Canada to a "little yippy dog" on Fox News over the weekend.
- Trump said on Sunday that Canada's dollar imbalance with the US is "unacceptable" and "no longer" tolerable.
Tariff Details
Canada will increase the import tax on many US steel items to 50% from 25%. The measures will also apply tariffs to a range of consumer items, including motorcycles, cosmetics and cheese. The tariffs will hit US exporters in states such as Michigan and Ohio that do significant business with Canada. Those states host heated races in November's midterm elections.
Negotiation Collapse
US and Canadian negotiators sought for weeks to reach a deal to lower trade tensions. Trump announced on Aug. 18 that they had a preliminary deal and gave three days to work out the details. The talks fell apart, and each side blamed the other for torpedoing an agreement in the final hours. Trump administration officials have repeatedly said they won't tolerate retaliation. US officials have declined to specify how or when Trump may respond with fresh measures.
Political Reactions
Brian Clow, a former senior Canadian adviser on trade under Justin Trudeau, said the tariffs are meant to make the cost of the trade war real for American businesses and consumers. Clow said Canada is imposing the tariffs because it wants the trade war to end. Treasury Secretary Scott Bessent compared Canada to a "little yippy dog" barking at a much larger one on Fox News. Trump wrote on Truth Social on Sunday that Canada's dollar imbalance with the US is "unacceptable" and "no longer" tolerable. The White House declined to clarify what Trump meant.
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