Canada has announced retaliatory tariffs on approximately CAD 29.8 billion (USD 20.7 billion) worth of U.S. goods in response to President Donald Trump's imposition of a 25% tariff on Canadian steel and aluminium imports.

The move follows the expiration of previous exemptions, duty-free quotas, and product exclusions, which had protected these imports. The Canadian tariffs, set to take effect shortly, will target a variety of U.S. products, including computers, sports equipment, and cast iron products, among others.

This escalation in trade tensions comes as Prime Minister Justin Trudeau prepares to hand over power to Mark Carney, who recently won the leadership of the Liberal Party.

The U.S. tariffs on Canadian steel and aluminium are part of Trump's broader strategy to reshape global trade rules in favour of the United States. Canada is the largest foreign supplier of these metals to the U.S., making the tariffs particularly impactful for both countries.

The Canadian government has emphasized that its countermeasures are designed to protect Canadian interests and encourage the U.S. to lift its tariffs. This trade conflict has been marked by recent tensions, including Ontario's temporary plan to impose a 25% surcharge on electricity exports to the U.S., which was later suspended.

The European Union has also announced plans to impose counter-tariffs on up to 26 billion euros (approximately USD 28 billion) worth of U.S. goods, further escalating global trade tensions.

The ongoing trade disputes between the U.S. and its major trading partners, including Canada and the EU, pose significant risks to global economic stability and could lead to a broader trade war.

ANI