Canada’s tariffs take effect

Canada’s retaliatory tariffs on $27.6 billion in American products took effect on Tuesday, marking the latest escalation in an ongoing trade fight between the U.S. and its northern neighbor.

© Ethan Cairns, The Canadian Press via AP

The economic policies impose 15 percent, 25 percent and 50 percent tariffs on around 6 percent of what the U.S. exported to Canada last year.

The tariffs cover a range of more than 700 U.S. products , including metals, clothing, appliances, cosmetics and farming products.

Last month, Canadian Prime Minister Mark Carney threatened to match new U.S. tariffs “dollar for dollar” after he pulled Canada’s negotiators from trade talks with the U.S. just hours before the Trump administration’s 50 percent tariffs went into effect.

The U.S. tariffs apply to more than $20 billion in Canadian goods, ranging from hockey sticks to wine to cement. Carney has criticized the action as a “direct violation” of the free trade agreement between the U.S., Canada and Mexico.

On Tuesday, Canada doubled its tariffs on U.S. steel and aluminum to 50 percent — a direct match on the 50 percent tariffs the U.S. imposed on these products from Canada.

Canadian Finance Minister François-Philippe Champagne said when announcing the counter tariffs last month that they were “designed primarily to provide protection for Canadian industries impacted by the U.S. tariffs and allow them to compete against U.S. products in the Canadian market.”

President Trump hit back immediately, threatening Canada with new 50 percent tariffs on imported cars, trucks, auto parts and steel to take effect on New Year’s Day.

Welcome to The Hill’s Business & Economy newsletter , I’m Julia Shapero — bringing you the latest on the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

Japanese brewing company Sapporo said Monday it will shift some of its production from Canada to the U.S. in the wake of the Trump administration’s new tariffs on Canadian beer.

Canadian Prime Minister Mark Carney said Tuesday his country has overrelied on “easy” economic ties to the U.S., a take he shared as his retaliatory tariffs on American goods went into effect.

The Trump administration on Tuesday announced new sanctions against all of Iran’s airlines and nearly a dozen foreign companies doing business with Iran’s Mahan Air, which had earlier been sanctioned for its ties to the Islamic Revolutionary Guard Corps (IRGC).

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