Canada has imposed fresh tariffs of between 15 and 50 per cent on about $20bn worth of US goods, escalating the ongoing trade war with the United States.
The new duties, which took effect on Tuesday, target American products including paper goods, construction materials, home appliances and agricultural products.
The move comes after trade talks between the two countries broke down last month, with US President Donald Trump and Canadian Prime Minister Mark Carney exchanging increasingly heated remarks.
Trump has also threatened to prevent Canadian aircraft manufacturer Bombardier from selling its planes in the US unless the company manufactures them domestically.
“If they want our Market, they must build here, and stop treating America like a ‘piggybank,’” Trump said in a social media post.
Bombardier, however, said it already has a significant manufacturing presence in the US and contributes substantially to the American aerospace industry.
The escalating dispute comes less than two months before the US midterm elections, with tariffs becoming a political issue for Republican lawmakers facing competitive races.
Canadian Industry Minister Mélanie Joly said Ottawa had deliberately designed its retaliatory measures to put political pressure on the Trump administration to reconsider its trade policies.
Meanwhile, Ontario Premier Doug Ford has warned that the province could restrict electricity exports to US states such as New York and Michigan if the trade dispute worsens.
The US and Canada remain heavily dependent on each other for key goods and industrial components, meaning prolonged tariffs could increase costs for businesses and consumers in both countries.
Economists warn that while consumers may not feel the immediate impact because many businesses have existing supply contracts, prices could rise significantly in the coming months if the trade war continues.
