Overview
- The Trump administration put 50% duties on roughly $20 billion of Canadian imports, a move that took effect after trade talks collapsed and has begun to be applied to listed goods.
- Ottawa responded with dollar‑for‑dollar retaliatory tariffs covering about $20–$27.6 billion of U.S. products that are scheduled to start on Sept. 8 and include measures aimed at key electoral states.
- Washington invoked Section 338 of the 1930 Tariff Act, a rarely used Smoot‑Hawley provision that lets the president unilaterally impose 50% duties when he deems foreign policies discriminatory.
- Canada unveiled roughly CAD 5.4 billion in support for affected workers and firms while signalling its tariffs were chosen to hit products tied to swing‑state jobs and industries.
- Economists warn the reciprocal levies will raise some consumer prices, strain cross‑border supply chains and put regional jobs at risk, and both governments are preparing legal and further policy responses.