New Canadian tariffs targeting roughly $20 billion in American imports came into force on Tuesday, marking the latest escalation in a trade dispute between Washington and Ottawa that shows no sign of easing, The New York Times reported.
The duties cover a range of American goods, including clothing, cheese, metal parts and wood products, and are designed to mirror the tariffs President Donald Trump imposed on Canada after negotiations between the two countries broke down last month, according to the newspaper. The New York Times noted that the economic impact may be limited for now, since the new tariffs affect only a small share of overall trade between the two countries, but warned that the greater risk lies in a cycle of retaliation that could push duties higher on both sides of the border.
Canadian Prime Minister Mark Carney has cast himself as a check on Trump's trade policy, describing his country as "at war" over the dispute, the New York Times reported. Canadian officials have pledged to respond to any American duties on a dollar for dollar basis.
Trump escalates on social media
The New York Times reported that Trump and his aides have repeatedly disparaged their Canadian counterparts and the relative size of Canada's economy and military. The president has already threatened further tariffs on Canadian car imports and suggested last week that he could move to halt bilateral trade altogether, according to the newspaper.
Hours before Canada's new tariffs took effect, Trump singled out the Canadian aircraft manufacturer Bombardier on social media, declaring "NO MORE SELLING BOMBARDIER IN THE UNITED STATES!", the New York Times reported. He also accused Canada of blocking American banks and companies from operating there and urged American consumers to avoid Canadian products, according to the newspaper. Bombardier responded that its aerospace products are among the top American exports and that the company builds key components, including wings, in California and Texas, the New York Times reported. The company said it supports large-scale American employment. The White House did not respond to the newspaper's request for comment.
A dispute with deep roots
According to the New York Times, the trade dispute became public in July, when Trump accused Canada of discriminating against American industries and threatened tariffs of 50% on selected Canadian goods unless a deal was reached within 30 days. Talks continued for weeks, and Trump appeared confident at points in August that a resolution was near, the newspaper reported, but negotiations collapsed before his deadline, with both sides blaming the other for the breakdown.
Washington responded in August by imposing duties on hundreds of Canadian imports, including wine, cheese, clothing and hockey sticks, according to the New York Times. Carney and other Canadian officials promised to retaliate after Labor Day, and Tuesday's tariffs represent the fulfilment of that pledge, the newspaper reported.
The New York Times noted that tensions have continued to escalate through symbolic gestures as well as trade measures, citing an executive order signed by Trump seeking to rename Lake Ontario as Lake America, and recent criticism from the president of the value of the Canadian dollar.
Wider trade war looms
According to the New York Times, the dispute with Canada is unfolding as Trump's administration finalises a new round of tariffs targeting dozens of other countries it accuses of unfair trade practices, expected to focus on nations it says have overproduced goods and contributed to persistent American trade deficits. Those measures could be announced within days, the newspaper reported, and are intended to replace duties struck down by the Supreme Court in February.
Trade groups have warned of the broader economic cost of the dispute. Brad Wood, senior director for trade and innovation at the National Foreign Trade Council, whose board includes major American companies such as Caterpillar, Exxon Mobil, Ford Motor and Walmart, told the New York Times that the retaliatory measures were harmful to businesses and consumers on both sides of the border, and questioned whether Trump intended to follow through on his broader threats.
Source: The New York Times
