Canada’s retaliatory tariffs take effect after U.S talks stall

Canada’s retaliatory tariffs on U.S. goods took effect ​just after midnight Tuesday, increasing economic pressure on the country’s ‌biggest trading partner.

Canada’s retaliatory tariffs on U.S. goods took effect ​just after midnight on Tuesday as Canadian Prime Minister Mark Carney increased economic pressure on his country’s ‌biggest trading partner after negotiations collapsed last month, intensifying an 18-month-old trade war.

The counter-tariffs cover $20 billion of U.S. goods, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics.

The dollar-for-dollar retaliation marks an escalation in the dispute between the neighboring ​countries, and U.S. and Canadian officials have traded blame for scuttling a deal that seemed close to ​fruition two weeks ago.

The rising tensions create uncertainty about the broader U.S.-Mexico-Canada free trade ⁠agreement, which is up for annual reviews after President Donald Trump declined to extend it for another decade.

“What we ​are worried about is an escalatory spiral,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and ​a member of Carney’s advisory committee on bilateral U.S. economic relations.