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TORONTO — The trade conflict between the United States and Canada intensified on Tuesday as Canada imposed retaliatory tariffs on about $20 billion worth of US goods, while President Donald Trump’s administration announced additional restrictions on Canadian imports.
The latest Canadian measures cover hundreds of US products, including steel, aluminum, cheese, appliances, clothing, cosmetics and agricultural equipment, with tariffs ranging from 15% to 50%. Ottawa said the measures were designed to match Washington’s tariffs and protect Canadian workers and businesses.
In response, the Trump administration announced that it would ban imports of certain Canadian dairy products, motorcycles and most alcoholic beverages from September 29. Washington has also moved to exclude Canadian products from major US government contracts unless Canada provides comparable access to American goods.
Canadian Prime Minister Mark Carney defended Ottawa’s response, saying Canada could not allow American goods to enter its market tariff-free while Canadian companies faced US trade restrictions. He stressed that the government was seeking to protect Canadian industries while reducing the country’s dependence on the US economy.
Carney has increasingly advocated diversifying Canada’s international trade, particularly by strengthening economic relations with Europe and other global markets. More than 70% of Canadian exports currently go to the United States, underscoring the scale of the challenge facing Ottawa as it seeks to expand alternative markets.
The latest escalation follows the collapse of US-Canada trade negotiations on August 21. Since then, Trump and his administration have issued a series of tariff threats and other measures targeting Canadian industries. Trump has also threatened to restrict the sale of aircraft manufactured by Canadian company Bombardier in the US unless the company increases production on American soil.
The dispute has also strained relations between the two traditionally close allies. Trump has repeatedly suggested that Canada could become the 51st US state, remarks that have generated strong opposition in Canada and contributed to growing public support for Carney’s tougher stance toward Washington. Canadians have also reduced travel to the United States and increased boycotts of American products.
Despite the escalation, Canadian and US officials remain in contact. Canadian Trade Minister Dominic LeBlanc said Ottawa remained prepared to engage with Washington, while a senior Trump administration official said the two sides had held constructive discussions and would continue exploring a possible path forward.
The intensifying trade dispute could have consequences well beyond North America, given the deeply integrated supply chains linking the two economies in sectors including automobiles, energy, agriculture, steel and manufacturing.
