Audio
Listen to the article
Ottawa
- Canada’s latest tariffs, in force from Tuesday, target around 700 American products including steel, dairy and home appliances.
- Ottawa says the levies retaliate for U.S. tariffs imposed after Prime Minister Mark Carney walked away from talks with the Trump administration on August 21st.
- Polls show Canadians back the defiance, while July trade data shows record non-U.S. exports of C$25.6bn and an 11.6% fall in exports to the U.S. to C$50.5bn.
Canada and America are escalating their trade war, with new Canadian tariffs on about 700 U.S. products taking effect on Tuesday in direct response to American levies.
What the new Canadian tariffs cover
The measures that came into force on Tuesday target around 700 American products, including steel, dairy and home appliances. Canada framed the move as retaliation in the widening dispute with Washington.
Why Ottawa says it retaliated
The levies are a response to American tariffs imposed on Canada after Mark Carney, Canada’s prime minister, walked away from talks with the Trump administration on August 21st.
American officials mocked Canada’s threat to retaliate. Scott Bessent, the treasury secretary, dismissed the country as a “little yippy dog” that was antagonising a German Shepherd.
Public backing and a shift in trade flows
Polls show that Canadians support Mr Carney’s defiance.
The prime minister hopes to cushion the economic blow by diversifying Canada’s trade away from its southern neighbour. Data for July showed that exports to the rest of the world reached a record high of C$25.6bn ($18.5bn), a 56% rise since Mr Trump was inaugurated in January 2025.
Meanwhile, exports to America fell by 11.6% over the same period, to C$50.5bn, underlining the early reorientation of Canadian trade as the tariff escalation continues.
KEEP THE CONVERSATION GOING
A good story is worth sharing.
Send this story to someone who values the bigger picture.
See more from GlobeBriefly on Google
Choose us as a preferred source in your Google preferences.
