Canada Slaps New Tariffs on US Goods

OMAHA (DTN) -- The Canadian government hit back on Tuesday, detailing new tariffs as high as 50% on hundreds of U.S. products, including dairy, fish and aquaculture, lumber, steel, aluminum and some harvesting machinery.

The Canadian tariffs, ranging from 15% to 50%, are set to take effect Sept. 8 in retaliation for U.S. tariffs on roughly $20 billion in Canadian products that took effect after trade talks collapsed late last week.

Among agricultural products, the Canadian government is placing 25% tariffs on a long list of fish and aquaculture products. Last year, the U.S. exported nearly $926 million in such products to Canada.

For dairy, Canada placed 25% tariffs on cheese and curd products, which amounted to $135 million in U.S. exports last year, according to USDA. Canada also placed 50% tariffs on a range of whey products, which accounted for $82.6 million in U.S. dairy exports last year. Milk and cream, which make up a small slice of U.S. exports, also were hit with a 50% tariff.

U.S. dairy exports to Canada last year topped $1.3 billion.

Another key agricultural area hit by the Canadian tariffs is wood products, which amounted to $1.97 billion in U.S. exports last year. Plywood products will face a 50% tariff while other wood products face a 25% tariff.

The Canadian tariff list also includes 25% duties on certain harvesting machinery, including balers and lawnmowers, while parts for such equipment would face a 15% tariff. Other farm equipment was largely unscathed.

Livestock trailers, along with other semi-trailers from the U.S., would see a 25% tariff.

A range of hand tools, vises, clamps, knives and other assorted items including livestock branding irons also were hit with 50% tariffs.

American iron, steel and aluminum products will face 50% tariffs. The tariffs include more than 380 steel products, 280 iron products and more than 50 aluminum products.

Other products listed for tariffs will hit U.S. manufacturers and other industries. Railroad construction materials will face tariffs, along with 25% tariffs on railroad locomotives.

U.S. building materials such as doors, frames, scaffolding, steel bars, wires, chains, nails and anchors will all face new Canadian tariffs as well.

Other consumer products hit include stoves and ranges, gas grills and other cooking appliances, radiators, air heaters, air conditioning units, refrigerators, dishwashing machines and laundry machines. U.S. smartphones will face a 50% tariff. Furniture products and gym equipment also face 50% tariffs.

While automobiles were not mentioned, Canada also placed 50% tariffs on larger motorcycle imports from the U.S.

Leaders in the U.S. and Canada have not spoken since negotiations ended last Friday, but several salvos have been fired through press interviews and social media. Canadian Prime Minister Mark Carney suggested the U.S. trade deals are now "written in pencil." President Donald Trump on Tuesday suggested on social media that he will rename Lake Ontario "Lake America." Also see, "U.S. Tariffs on Canada Take Effect; Retaliatory Duties Expected," https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

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