Canada imposes retaliatory tariffs on American goods in escalating trade dispute

Canada put 25 percent tariffs on around C$30 billion of American goods on 4 February 2025. This was a direct response to tariffs the United States had placed on Canadian products. A second round of tariffs, covering C$125 billion more of U.S. goods, was planned to start three weeks later. The new taxes hit products like steel, furniture, clothing, and cars. Canadian provinces also stopped buying some American goods and restricted U.S. alcohol sales. By September 2025, Canada had dropped some of its early tariffs but kept them on vehicles and about C$15.6 billion worth of steel and aluminum. The dispute had already lasted around 18 months, causing uncertainty for businesses on both sides of the border.