Aug 25, 2026
Canada struck back at the U.S. on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalates. The confrontation threatens one of the world’s largest tr ading relationships and further strains ties between the U.S. and a country long considered one of its closest allies. A prolonged dispute could raise costs for American businesses and consumers less than 2½ months before the midterm elections. The new tariffs extended well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%. “We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Finance Minister François-Philippe Champagne said in French, calling the situation “an unprecedented challenge imposed on Canada.” Industry Minister Mélanie Joly urged Canadians to buy Canadian goods, saying doing so would help protect jobs and launch a “movement of resistance.” She said Canada selected some American products for tariffs to put political pressure on particular U.S. states. Canadian officials used a similar strategy during Trump’s first term, when retaliatory tariffs targeted Kentucky whiskey, Florida orange juice and Wisconsin yogurt. Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods following the collapse of trade negotiations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.” The Associated Press has the full story. ...read more read less
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