Canadian retaliatory tariffs on US goods take effect

Canada’s retaliatory tariffs on a broad range of American goods took effect Tuesday morning, escalating a trade dispute between the two neighboring countries.

About 700 US products, including electronics, steel, lumber and dairy goods, now face tariffs of between 15% and 50% when they enter Canada. The targeted products have a combined value of $20 billion, or about 128 billion Danish kroner.

Canada announced the tariffs two weeks ago as a direct response to recently imposed US duties. The Canadian government said it would match the American measures dollar for dollar.

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Canada had refused to complete the trade agreement.

The two countries negotiated in August to reach a trade agreement, but failed to settle the deal despite reports of progress in the final stage. US Trade Representative Jamieson Greer said Canada had refused to complete the agreement. Canadian Prime Minister Mark Carney said the United States had changed the terms at the last minute and created uncertainty about whether the deal could be trusted.

The negotiations took place under pressure from President Donald Trump, who had threatened tariffs of up to 50% on Canadian goods if the countries did not reach an agreement by Aug. 22. The United States is Canada’s largest trading partner, taking 70% of Canadian exports. Canada is the United States’ second-largest trading partner in goods, after Mexico.

The dispute has also spilled beyond trade. Trump signed an order last week to rename Lake Ontario “Lake America.” Carney said the decision would not change what the lake is called in Canada, noting that its name is 400 years old and predates both the United States and Canada.

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The United States had changed the terms at the last minute and created uncertainty about the reliability of the agreement.