Canada imposes up to 50 percent counter-tariffs on US goods as trade war escalates
Canada is imposing counter-tariffs ranging from 15 to 50 percent on nearly $20bn worth of US imports, matching US levies on Canadian goods including machinery, textiles and consumer products. The measures escalate a trade dispute that has strained one of the world's longest-standing trading relationships after talks on a new deal collapsed. The dispute began with Donald Trump's return to office, when he imposed tariffs on Canadian imports and threatened further action, while also raising the prospect of Canada becoming the 51st US state. Canada has responded with its own tariffs and is exploring alternative trading partners, including the European Union and China. Trump has also threatened Canadian aircraft maker Bombardier, saying it must build its aircraft in the US if it wants to operate there, after previously threatening a 50 percent tariff on Canadian-made aircraft. The latest escalation comes as Trump threatens further measures, while economists warn the financial impact could be greater for Canada. The dispute has also boosted support for Canadian Prime Minister Mark Carney, with 73 percent backing his position and saying they are prepared to endure the economic pressure.Al Jazeera's Alan Fisher reports from the White House.
Jennifer Hassum is the Executive Director at the Broadbent Institute; a Canadian Public Policy Think Tank.
She says tariffs will impact both economies, because they are very closely linked.
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