Canada Imposes Major New Tariffs on American Goods

The new taxes are a direct retaliation against Trump’s trade measures.

Trump and Trudeau

President Donald Trump and Canadian Prime Minister Justin TrudeauMichael Kappeler/DPA via ZUMA

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Canada officially implemented tariffs on about $12.5 billion worth of US goods Sunday, the latest offensive in the growing trade battle between the United States and other major economic powers. US exports of steel and other metal products now face a 25-percent tax, while other products—such as milk, ketchup, beef, and yogurt—will be taxed at 10 percent. 

The tariffs come in direct response to the Trump administration’s own tariffs on Canadian steel and aluminum, which have also affected Mexico, China, Turkey, India, and the European Union. Canadian officials first announced the new tariffs on Friday. 

“We will not escalate, and we will not back down,” said Chrystia Freeland, Canada’s foreign minister. “It is a dollar-for-dollar response.”

Other countries have also slapped retaliatory tariffs on the United States, with the EU adding taxes on motorcycles, bourbon, and orange juice. On Monday, Harley-Davidson announced it would move some of its production overseas, citing the EU’s new tariffs on American-made motorcycles. The company’s announcement infuriated President Donald Trump:

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Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

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