Starting at 05:01, Lisbon time, Canada's new retaliation tariffs on hundreds of North American products came into effect, a decision that escalates the trade war between the two largest economies in North America. Canadian customs duties of 15, 25 or 50% affect approximately $20 billion in North American products, from steel to dairy products, including electronics and pulp.
This measure came after heavy US tariffs of 50% took effect, affecting approximately $28 billion Canadian dollars worth of Canadian products, following the collapse of trade negotiations between the two countries. US tariffs affect products ranging from hockey sticks to wine and cement.
The trade conflict began in February 2025, when US President Donald Trump announced the imposition of broad tariffs on Canadian products, including a 25% duty on most imports and 10% on Canadian energy products, invoking a national emergency related to immigration and drug trafficking. Canada, then led by Prime Minister Justin Trudeau, responded with 25% retaliation tariffs.
The strong integration of supply chains between Canada and the United States, particularly in the automotive, energy, agricultural and industrial sectors, increases the risk of a prolonged trade dispute causing high costs for businesses and workers in both countries.
