Retaliatory Canadian 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.

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.

“Canada has been ripping off the United States of America for years,” Trump wrote on Truth Social following Canada’s announcement of its retaliatory tariffs last month.

“Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries,” he continued. “Not sustainable, and NOT ANYMORE!”

The president said Canada will no longer “be treated like a State.”

Trump has repeatedly suggested the U.S. trading partner could be ceded as a U.S. state, sharing a map of the two countries covered in the American flag in a Monday Truth Social post .

On Monday, the president also threatened to block the sale of Canada’s Bombardier aircraft unless they move manufacturing to the U.S.

“If they want our Market, they must build here, and stop treating America like a ‘piggybank,’” he wrote on Truth Social . “BUY AMERICAN. FLY ON AMERICAN AIRLINERS. ENJOY AMERICAN LIQUOR AND BEVERAGES. SAIL ON LAKE AMERICA. AMERICA FIRST!”