Topline
Trade tensions between the U.S. and Canada significantly escalated this weekend when Canadian Prime Minister Mark Carney said the two sides are in an economic “war,” after President Donald Trump targeted major Canadian industries but also numerous highly specific items.
A large amount of Canadian imports will now be subject to 50% tariffs.
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Key Facts
Trump issued three tariff proclamations last month targeting top Canadian industries, including alcohol, dairy and cars, with corresponding lists of items tariffed under each order noting obvious goods but also some eyebrow-raising products.
Full lists of items targeted by U.S. tariffs can be found on the Federal Register under larger proclamations accusing Canada of discrimination against U.S. dairy, alcohol and automotive industry.
WHAT ARE SOME ITEMS TRUMP TARGETED?
The list of dairy product targets includes milk, cream and whey protein, but Trump also puts tariffs on cane molasses and blended syrups (but not Canada’s beloved maple syrup). Ice hockey and field hockey equipment are on another list, while other athletic equipment appear in another—including golf equipment, ice skates and fishing rods. Several kinds of clothing, including t-shirts, trousers, sweaters, overcoats, windbreakers, men’s suits and blazers, and accessories, including belts, jewelry, hats, wigs, false beards and eyebrows are included. Tools and tool parts, including wrenches, chainsaw blades, rakes and sledgehammers also appear, along with electronics like smartphones, television cameras, radar apparatuses, video monitors and parts for manufacturing electronics. Animal products, like down feathers, tortoise shells, antlers, raw hides of bovines and reptiles, as well as animal equipment like “dog leashes, collars, muzzles, harnesses” and “saddlery and harnesses” are also impacted. Christmas decorations, including ornaments and other “articles for Christmas festivities,” as well as “festive, carnival or other entertainment articles” are targeted for tariffs, while some common gifts that appear under the tree like bicycles, puzzles and models, video game consoles and coin or token-operated arcade games were listed, as well. Paintings, artwork, sculptures, stamps, statuary, other collector’s pieces (such as pieces of archaeology), as well as antiques older than 100 years but not over 250 years old are listed, as are suitcases, trunks, vanities and other types of bags.
Key Background
Trade talks between the U.S. and Canada fell apart over the weekend after Carney rejected a deal and suspended the negotiations. The U.S. had previously threatened Canada with targeted 50% tariffs in July, but gave the country’s government 30 days to negotiate a new trade deal. Carney recalled Canada’s negotiators back to Ottawa on Friday. “They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute,” Carney said in a statement. “However, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”
What Is Canada Targeting In Return?
“Canada will match the U.S.’ new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said on Saturday. The prime minister said more details about the impending tariffs would be released “in the coming days.” In a speech on Saturday, Carney said these tariffs will be focused on the U.S. “steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics” sectors.
Big Number
$28 billion. That’s the value of the goods under new U.S. tariffs, according to Carney.