Canada, US and tit-for-tat tariffs: How will they impact their economies?

Both countries will suffer from the trade war, experts say, with steeper tariffs raising business costs and consumer prices. Canadian Prime Minister Mark Carney has announced retaliatory tariffs that will “match Washington’s new tariffs dollar for dollar” after days of intense negotiations between the United States and Canada broke down. The tit-for-tat response came after US President Donald Trump imposed a 50 percent levy on $20bn of Canadian goods, or 5.5 percent of its exports, disrupting the long history of stable relations between the two North American neighbours. Trump first imposed tariffs on key imports from Canada early in his second term last year. The two countries have scuffled since with Trump periodically making new tariff threats.

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