Canada's retaliatory tariffs against the U.S. officially take effect

The Canadian government’s retaliatory measures against U.S. tariff hikes officially took effect early on the 8th. Canada began imposing retaliatory tariffs of equal value on U.S. imports such as steel, dairy products, agricultural equipment, pulp, and electronic products.

　　Canadian Prime Minister Carney announced on the evening of September 7 that the Canadian government will hold a cabinet planning meeting in Banff, Alberta, on September 10–11. The meeting will assess the progress of existing policy initiatives and seek analysis and recommendations from experts in the fields of economics and international affairs.

Carney stated that the government is rapidly advancing the diversification of Canada’s foreign trade and defense relations. In the face of “severe external headwinds,” the government will not deviate from its established policy direction.

　　On the same day, in a Labor Day statement issued on the eve of the retaliatory tariffs taking effect, Carney said that in the face of “unreasonable and unfounded tariffs” from the United States, the Canadian government is protecting workers and businesses, helping them with skills training, and expanding into diverse markets. Canada’s reliance on a single partner is decreasing.

　　According to Canadian media reports, small and medium-sized enterprises (SMEs) will be among the hardest-hit groups in this round of the Canada-U.S. trade war. Dan Kelly, president of the Canadian Federation of Independent Business, pointed out that while previous rounds of tariffs primarily affected sectors such as commodities and automobiles, this round directly impacts Canada’s struggling small business owners.

　　Trade negotiations between Canada and the United States broke down in late August, prompting the U.S. to impose a 50 percent tariff on $20 billion worth of Canadian goods.