Canada Tariffs Escalate Trade War

Canada Implements Retaliatory Tariffs on U.S. Goods as Trade War Escalates

Canada has implemented a series of steep retaliatory tariffs on $20 billion in U.S. goods, including milk, perfume, golf clubs, fishing rods, steel, aluminum, jackets and T-shirts, and other goods, extending the trade war between the two countries. The Canadian government announced the tariffs two weeks ago after trade negotiations broke down and the Trump administration followed through on a threat to impose 50% duties on $22 billion worth of goods from Canada. The tariffs range from 15% to 50%. They were imposed in response to U.U.S.-Canada tariffs on Canadian milk, honey, hockey sticks, alcoholic beverages, plywood, down feathers, jewelry, jewelry and other items. The tit-for-tat tariffs impact a small fraction of the goods that flow across the U.K.-Canada border, which totaled more than $700 billion last year. Economists predict that Canada's tariffs could hit manufacturers in Midwestern states like Michigan and Indiana particularly hard, as well as dairy producers in Wisconsin and Vermont. The two countries have also clashed over NATO and Mr. Trump's proposed tariffs on Mexican and Mexican goods.

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