What to know about Canada's escalating trade war with the U.S.

Canada retaliated against U.S. President Donald Trump with tariffs on about $20 billion worth of American goods on Tuesday, responding to a new round of tariffs aimed at Canada. The measures hit hundreds of U.S. products—including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment—at rates of 15%, 25% or 50%. Canada says the tariffs match Washington dollar for dollar and rate for rate, and they took effect at 12:01 a.m. Tuesday under an order in council, covering roughly 6% of the $333.6 billion exported to Canada in 2024. RBC Economics said they are unlikely to dent U.S. growth overall, though some Canadian-linked businesses could feel pressure.