Canada threatens retaliatory measures against 50% US tariffs
Canada threatens retaliatory measures against 50% US tariffs. Trade wars rarely end with a clear winner — they a game where every new tariff becomes a retaliatory strike, and economic tensions escalate into political ones. When the White House imposes 50% tariffs on a wide range of Canadian goods, it is not just a trade measure but a signal that relations between two closest neighbours and allies are entering dangerous territory. Ottawa has already signalled its readiness to respond, and a new round of trade confrontation could hit consumers on both sides of the border.
On Monday, the White House announced that the United States would impose an additional 50% ad valorem tariff on certain Canadian goods. The move is intended to counter "discriminatory measures" taken by Canada in trade in motor vehicles and auto parts. According to a fact sheet released by the White House, the new tariffs will target a range of Canadian goods, including wine, hockey sticks and cement. Notably, these tariffs will apply even to goods that currently meet the terms of the United States Mexico Canada Agreement (USMCA).
The White House said the tariffs are designed to offset the burden and inconvenience imposed on US trade by Canada's discriminatory practices. The new measures are set to take effect at 12:01 a.m. Eastern Time (04:01 GMT) on 19 August. Following the announcement, Carney confirmed that he had spoken with US President Donald Trump, adding that Canada will consider all possible retaliatory options if the new tariffs take effect.
The new tariffs cover a wide range of products — from everyday consumer items such as wine and hockey sticks to industrial goods including cement. The duties have been introduced under Section 338 of the Tariff Act of 1930, which covers trade discrimination rather than national emergencies. Earlier this year, the US Supreme Court struck down sweeping international tariffs imposed by Trump through the International Emergency Economic Powers Act, ruling that the president had exceeded his authority. In early July, the US declined to renew the USMCA at the agreement's mandatory six year joint review.
As CCTV+ reports. Negotiations between the two countries continue, and the outcome of this trade dispute will depend on the ability of both sides to find a compromise.
