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Canada Mulls Retaliatory Tariffs After US 10-12% Duties

7/24/2026

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Summary

Story summary

Canada Prime Minister Mark Carney said Ottawa will not rule out retaliatory tariffs and aims to avoid punitive measures if the U.S. launches a trade wave.
U.S. President Donald Trump announced 10-12.5 percent duties on dozens of countries, targeting forced-labour goods including Canada, to maintain a baseline levy on most trading partners.
Canadian officials said all options remain on the table if no agreement is reached with the United States.

History

Historical Context

After the 1930 Smoot-Hawley Tariff—championed by Senator Reed Smoot and Rep. Willis Hawley raised U.S. duties to about 60% and cut imports by more than 40%—the United States shifted to tariff-reduction policies in the 1930s and after World War II through GATT. In July 2026 President Donald Trump invoked Section 338, imposing a 50% tariff on Canadian goods, echoing the protectionist legacy.

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Story summary

Canada Prime Minister Mark Carney said Ottawa will not rule out retaliatory tariffs and aims to avoid punitive measures if the U.S. launches a trade wave.
U.S. President Donald Trump announced 10-12.5 percent duties on dozens of countries, targeting forced-labour goods including Canada, to maintain a baseline levy on most trading partners.
Canadian officials said all options remain on the table if no agreement is reached with the United States.

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