Canada set to hit back at Trump tariffs, risking wider trade war

Canada is poised to impose tariffs of 15 per cent to 50 per cent on hundreds of products from the US on Tuesday, as Prime Minister Mark Carney bets that standing up to US President Donald Trump will eventually help Ottawa’s negotiating position with its biggest trading partner.

Barring a last-minute reprieve, Carney’s government will increase the import tax on many US steel items to 50 per cent from 25 per cent and apply tariffs to a range of consumer items – motorcycles, cosmetics, cheese and more.

The measure will hit US exporters particularly hard in states such as Michigan and Ohio, which do a lot of business with Canada, and host heated races in November’s midterm elections.

It is a calculated risk for Carney, who a year ago removed many of the counter-tariffs his predecessor, Justin Trudeau, had implemented. Trump administration officials have repeatedly said they will not tolerate retaliation and noted that only two countries, Canada and China, have used counter-tariffs.

US officials have declined to specify how or when Trump may respond with fresh measures of his own.

“Canada’s retaliatory tariffs are meant to make the cost of this trade war real enough for American businesses and consumers that Washington sees a clear incentive to return to the table,” said Brian Clow, who was a senior Canadian adviser on trade and US relations under Trudeau.