The United States and Canada have been engaged in a trade war for several months. On Tuesday, Canadian retaliatory tariffs came into effect**, targeting U.S. goods worth $27.6 billion, with duties ranging from 15 to 50%. The move was in response to the Trump administration's imposition of tariffs on Canadian goods worth nearly $28 billion under Section 338 of the Tariff Act of 1930.
In response, the U.S. President Donald Trump banned the import of various Canadian products, including alcohol, motorcycles, and dairy products, starting from September 29. The ban also includes 50% tariffs on a series of other products, such as paper and wood products, aluminum products, furniture, and mattresses.
The trade war has led to a decline in tourism between the two countries, with Canadians choosing to avoid traveling to the U.S. due to the tensions. As one marketing executive based in Vancouver said, "It's such a big ask right now... It's just a wasted effort."
Canada's Prime Minister Mark Carney has defended the country's decision to retaliate against the Trump administration's tariffs, saying that Ottawa will not back down and warning of tough times ahead for Canadians. A recent poll found that 80% of respondents support or somewhat support dollar-for-dollar countertariffs.
The trade war between the U.S. and Canada is an escalation of tensions that began last month when trade talks collapsed. The dispute has led to economic pain on both sides, with Canadian businesses affected by the tariffs and American tourism organizations trying to woo Canadians back to visit the United States.
Washington moving to ban a raft of goods from its northern neighbour
