CANADA IMPOSES RETALIATORY TARIFFS ON US GOODS AMID TRADE DISPUTE

Canada is set to impose retaliatory tariffs on billions of dollars' worth of American imports early on Tuesday, escalating a trade dispute with its largest trading partner. The tariffs, ranging from 15% to 50%, will apply to products covering C$27.6bn in imports from the United States and take effect at 12.01am. The measures will target steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, motorcycles, cosmetics and cheese. Canada's government said the counter-measures come "as a result of the United States' decision to impose a 50% tariff on $27.6bn of Canadian goods effective August 22".

The tariffs on American steel will increase from 25% to 50%, according to one account. The retaliatory measures are designed to affect US exporters particularly in states including Michigan and Ohio, which conduct substantial trade with Canada and host competitive races in November's midterm elections. Tensions between Canada and the United States have intensified in recent weeks. US President Donald Trump announced the 50% tariff on Canadian goods last month and has accused Canada of "ripping off" the United States. Trump has also taken symbolic actions including signing an executive order renaming Lake Ontario "Lake America", which Canadians rejected. US Vice-President JD Vance has reportedly mocked Canadian Prime Minister Mark Carney.

Canadian officials said the tariffs do not apply to US goods already in transit to Canada on the day they come into force. Trump administration officials have said they will not tolerate retaliation and noted that only two countries—Canada and China—have used counter-tariffs against the United States. US officials have not specified how or when Trump may respond with fresh measures. One analyst stated that "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".