Kathmandu. The trade war has started again in the world. Tensions between the US and Canada have increased.
Although U.S. President Donald Trump announced a 50% tariff on Canadian goods later this month, accusing Canada of discriminating against the United States, Canada has responded appropriately. According to the report, Canada has retaliated by imposing tariffs of up to 50% on more than 700 U.S. products, effective Sept. 8.
Talk failed, re-tariff {{
This tariff war between the U.S. and Canada has once again raised the risk of a trade war around the world. According to a CNBC report, Canada has imposed retaliatory tariffs on a wide range of U.S. goods, and this comes after trade talks between the two countries failed last month.
Canada has imposed tariffs ranging from 15 per cent to 50 per cent on hundreds of U.S. products. That totals 27.6 billion Canadian dollars. This includes dairy products, agricultural equipment, paper, household appliances and electronics. Canada’s tariffs on U.S. steel, aluminum and iron products have now doubled to 50%. Furniture, motorcycles, clothing and some beauty products are also included in the list of highest-taxed items.
U.S.–Canada head-to-head
According to reports, Canada described its move to impose a 50% tariff on U.S. goods in response to the U.S. announcement on Aug. 22 that it would impose an additional 50% tariff on about 20 billion Canadian wines, hockey sticks and other goods.
Canada’s finance department said in a statement that the move will protect its workers, producers and manufacturers.
Following Canada’s move, US President Trump on Tuesday accused Canada of trade discrimination against the United States. The U.S. announced a 50% increase in its existing tariffs on Canadian products starting Sept. 15. He also announced a ban on the import of many Canadian dairy products, motorcycles and alcoholic beverages from Sept. 29.
How much does the U.S.-Canada trade do?
U.S.-Canada trade is extensive. Current data from the U.S. Trade Representative shows that in 2025, the U.S. exported $333.6 billion worth of goods to Canada. The U.S. imported $381.9 billion worth of goods from Canada.
The two countries trade in many common sectors, including energy, automobiles, heavy machinery, aircraft, pharmaceuticals, gems and jewelry, furniture, clothing, and a variety of food and beverages. – Agency
