Canada’s tariffs on U.S. goods: Should Carney escalate further?

Canada has retaliated against new U.S. tariffs with its own duties on American goods, set to take effect September 8, targeting steel, aluminum, furniture, and other products. The move follows Washington's imposition of Section 338 duties on Canadian imports over the weekend. The Canadian list applies 50 per cent tariffs to items like steel, aluminum, furniture, and smartphones, while 25 per cent tariffs hit carpets, cheese, and appliances. Ottawa says the list protects domestic market share rather than targeting politically sensitive U.S. products, though analysts note it may still affect battleground states like Michigan and Ohio. Experts doubt the retaliation will force a quick deal, with some suggesting Canada could escalate further by targeting energy exports. However, Prime Minister Mark Carney may avoid that route due to tensions with Alberta, keeping energy tariffs as a threat rather than action.