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list 1 of 4How will Trump’s tariffs affect Canada’s economy.
list 2 of 4Carney: Canada will enact retaliatory US tariffs starting September 8.
list 3 of 4Canada to match US tariffs “dollar for dollar,” PM Carney says.
list 4 of 4Canada to hit US with retaliatory tariffs as trade war escalates.
Trump first imposed tariffs on key imports from Canada early in his second term last year. The two countries have scuffled since with Trump periodically making new tariff threats.
So what prompted this latest escalation, and how will it impact the two Western economies.
In Ottawa on Saturday, Carney said the talks with the US broke down late the day before after Trump set conditions that were ultimately unacceptable.
He added that US negotiators also made unacceptable “threats” to the French language and “Quebec culture”, referring to the French-speaking province in eastern Canada.
In a speech later in the day, Carney suggested that last-minute changes at the bargaining table had prompted him to recall his negotiators from Washington, DC, to Ottawa.
Trump responded to Carney’s announcement by writing on his platform Truth Social: “Canada wants the benefits of being a State, without being one!!!” Trump has previously issued threats to annex Canada and make it the 51st US state.
The US president claimed Canada has also charged US farmers “massive amounts” of tariffs for years, adding, “No more!!!”.
What Canadian products will be affected by the US tariffs.
The list of goods from Canada that will be affected is long, ranging from whisky to goose-down jackets and ice hockey equipment.
Alcohol, such as beer, wine, liquor and cider. They will likely hit popular Canadian brands from Crown Royal whisky to Molson beer.
Dairy products from milk and cream to lactose syrup. Cheese, however, is not on the list even though Trump said a reason for the tariffs is Canada’s “discrimination” against US cheeses, The Washington Post reported.
Technology from smartphones to cameras, radar equipment and antennae.
Athletic gear, notably equipment for hockey, one of two of Canada’s national sports. Other sports supplies targeted include those used in golf, at gyms and in swimming pools.
Wood products, including lumber, mouldings, plywood, furniture and fence components.
Seasonal holiday products and gifts, including toys, clothing, Christmas decorations, jewellery, makeup and perfumes.
The tariffs also apply to some products that were previously protected under the US-Mexico-Canada Agreement, a trade pact signed during Trump’s first term, putting its future into question.
The new tariffs are being imposed in addition to pre-existing US tariffs on steel, lumber and cars.
What American products will be affected by Canadian tariffs.
Ottawa, meanwhile, said its retaliatory measures beginning on September 8 will target steel, dairy, appliances, farm equipment, pulp and paper, and electronics.
The Canadian government will release more details on the items to be targeted in the coming days, Carney said.
How will the trade war affect Canada’s economy.
Canada’s economy is expected to face a big blow from the tariffs, some experts said.
Julian Karaguesian, a lecturer and trade expert at McGill University in Montreal, told Al Jazeera the tariffs would “effectively price hundreds of Canadian goods out of the US market”.
Key industries that are “important and politically influential”, including the alcohol, dairy and furniture industries, will take the biggest hit, Steven Okun, the CEO of APAC Advisors and a trade specialist, told Al Jazeera.
At the same time, Mercer said, Carney is selling the trade war as an opportunity for Canada to strengthen its trade relations with other countries.
The United Kingdom is next with 6 percent of Canadian exports going there while 4. 4 percent of Canadian exports head to China, according to 2025 data cited by the firm, with the rest sold in various European and Asian markets.
How will the trade war affect the US economy.
Experts warned that steeper tariffs not only raise costs for businesses but they almost always trickle down to households in the form of higher prices, including in the US.
The Business Roundtable, a group of 200 chief executives of leading US corporations, warned that the new tariffs “risk raising costs for American businesses and families” and have called on both governments to resume negotiations.
Okun said the latest tariffs will be “politically painful” on both sides of the border.
Trump’s measures have neither increased trade for the US nor led to an increase in investment, as he said they would, and instead have caused inflation by raising prices, Okun explained.
Having a blanket tariff policy does not work, unlike targeted tariffs, he said.
Diamond Isinger, who served as a special adviser to former Canadian Prime Minister Justin Trudeau, said ultimately both countries will suffer from the trade war.
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Informação baseada em material público de Al Jazeera, reescrito pela redação ULTRA NOTÍCIAS.
