Canada, US escalate trade war with new tariffs and import restrictions |LAGOS EYE NEWS

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Canada has imposed retaliatory tariffs on billions of dollars worth of US goods, escalating a trade dispute between the two North American neighbours.

The new duties, which took effect on Tuesday, range from 15% to 50% and cover about C$27.6bn (US$20bn) worth of US imports.

The measures target products including steel and aluminium, as well as dairy goods such as cheese. Some seafood products were removed from the initial list.

The move comes weeks after US President Donald Trump imposed 50% tariffs on a similar value of Canadian goods.

Washington said the measures were a response to what it described as “discriminatory treatment” of US alcohol, automobile and dairy industries.

Trump has now escalated the dispute further by introducing additional restrictions on Canadian imports.

From 15 September, a 50% surcharge will apply to a range of Canadian products, including mattresses, motorboats and golf carts, under an executive order issued by the US president.

An import ban targeting various alcoholic beverages and some dairy products, including whey, is due to take effect on 29 September.

Canadian Prime Minister Mark Carney has defended his government’s response, acknowledging that reducing Canada’s economic dependence on the US would come at a cost.

He said, however, that the long-term benefits of strengthening Canada’s economic independence would outweigh the immediate economic pain.

LAGOS EYE NEWS reports that the measures mark a further deterioration in trade relations between the two countries, which have historically maintained one of the world’s largest bilateral trading relationships.

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