Canada unveils matching tariffs on US goods in escalating trade dispute

Canada has announced a comprehensive package of reciprocal tariffs targeting a wide range of US goods, with rates climbing as high as 50 percent in some sectors. The measure represents the country's response to American trade actions and signals an intensification of trade friction between the two neighbours.

The Canadian tariff regime will affect multiple industries, including steel producers, furniture manufacturers, fresh tuna exporters and cosmetics makers. The dollar-for-dollar approach aims to match the economic impact of US tariffs on Canadian exports, covering both consumer goods and raw materials vital to cross-border supply chains.

The announcement comes amid broader trade disputes between Washington and Ottawa. Both countries have increasingly turned to tariffs as negotiating tools, with each round of measures prompting reciprocal responses that threaten to disrupt integrated North American supply chains.

Businesses on both sides of the border have expressed concern about the escalating tariff war, warning that prolonged trade tensions could raise consumer prices and slow economic growth. The dispute has highlighted growing disagreements over trade policy and market access between the two traditionally close trading partners.