TORONTO (AP) \u2014 Canada struck back at U.S. President Donald Trump on Tuesday with tariffs on about $20 billion worth of U.S. goods, in response to the latest round of tariffs on Canada.<\/p>\n
The outcome could resonate far beyond Canada, showing other governments whether a smaller U.S. ally can withstand Trump\u2019s economic pressure.<\/p>\n
Canadian Prime Minister Mark Carney<\/a> says U.S. demands could hollow out key Canadian industries and limit the country\u2019s independence, while Trump\u2019s threats to Canadian sovereignty have rallied the public behind him.<\/p>\n \u201cCarney and Canada have become symbolic of resistance to him,\u201d Canadian historian Robert Bothwell said. \u201cAnd what he\u2019ll want to do is make an example of Carney and Canada and theoretically terrify everybody else while in fact showing them that they need to remove themselves even further from the United States.\u201d<\/p>\n The tariffs hit hundreds<\/a> of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%.<\/p>\n Here\u2019s what to know.<\/p>\n Canada retaliates with tariffs on hundreds of US products<\/p>\n Canada says its tariffs match Washington\u2019s dollar for dollar and rate for rate. They take effect at 12:01 a.m. Tuesday under an executive action known as an order in council and cover about $20 billion in American goods, roughly 6% of the $333.6 billion the United States exported to Canada last year.<\/p>\n RBC Economics, the research arm of the Royal Bank of Canada, said the measures were unlikely to dent U.S. growth overall but could hit some businesses hard.<\/p>\n Canada has already gone beyond tariffs in other ways. Eight of its 10 provinces continue to restrict or ban sales of U.S. alcohol. The Distilled Spirits Council says U.S. spirits exports to Canada fell more than 70% year over year after those restrictions took effect.<\/p>\n Trump threatens to punish Canada even further<\/p>\n Since Canada-U.S. trade talks collapsed Aug. 21<\/a>, Trump and his administration have unleashed a barrage of tariffs, threats and personal attacks portraying Canada as weak and dependent.<\/p>\n On Monday, Trump threatened to ban the sale of aircraft from Canada\u2019s Bombardier, unless they manufacture planes in the United States.<\/p>\n \u201cNO MORE SELLING BOMBARDIER IN THE UNITED STATES! Their products aren\u2019t good enough!\u201d Trump posted<\/a> on Truth Social. \u201cIf they want our Market, they must build here, and stop treating America like a \u2018piggybank.\u2019\u201d<\/p>\n Flavio Volpe, president of APMA Canada, a manufacturing trade group, responded on X<\/a> that Bombardier uses U.S.-made GE and Honeywell jet engines and employs about 3,000 U.S. workers.<\/p>\n Trump previously warned that Canada\u2019s economy could collapse if Carney continued treating him as \u201cthe enemy\u201d and threatened consequences \u201cworse than anything that has ever happened to a Canadian Politician.\u201d<\/p>\n U.S. Trade Representative Jamieson Greer has threatened that Washington could ban some Canadian goods outright in response.<\/p>\n Trump even renamed Lake Ontario \u201cLake America,\u201d a change ignored and ridiculed in Canada<\/a>. Google and Apple bent to Trump\u2019s pressure and changed their maps for U.S. users. On Monday, he published a map of North America covered in the U.S. flag on social media.<\/p>\n \u201cAfter renaming a gulf and a lake, maybe the next step for him is to rename a river?\u201d said Daniel B\u00e9land, a political scientist at McGill University.<\/p>\n Trump\u2019s pressure is hardening resistance in Canada<\/p>\n Trump\u2019s trade war and repeated talk of making Canada the 51st state have fueled anger and rallied support for Carney. Canadians have sharply cut travel<\/a> to the United States and boycotted U.S. goods.<\/p>\n The current trade war began after Trump returned to office and imposed a series of tariffs on Canadian goods despite having negotiated and repeatedly praised the North American trade agreement during his first term. Many of those tariffs violate the pact.<\/p>\n The rupture is especially striking because the countries have long shared one of the world\u2019s closest relationships<\/a>, with deeply integrated economies, close defense and security cooperation, vast cultural ties and, before relations deteriorated, about 400,000 people crossing the border each day.<\/p>\n Carney has said talks can resume when the Americans \u201cstop doing memes, stop throwing shade, stop trying to be tough\u201d and become serious.<\/p>\n So far, Trump\u2019s pressure has backfired in Canada, strengthening support for Carney rather than forcing concessions.<\/p>\n Nelson Wiseman, professor emeritus of political science at the University of Toronto, said Trump\u2019s 2024 reelection deepened Canadians\u2019 distrust of the United States \u2014 not just its government, but the judgment of Americans.<\/p>\n \u201cCanada-U.S. relations, even without confrontation, will never be what they were before Trump,\u201d he said.<\/p>\n Carney is becoming a global voice for standing up to Trump<\/p>\n At the World Economic Forum in Davos<\/a> in January, Carney warned that great powers are using economic integration to coerce smaller countries. The speech helped establish him as the leading voice among countries looking for ways to resist Trump.<\/p>\n Trump responded a day later by saying Canada \u201clives because of the United States\u201d and warning: \u201cMark, remember that next time you make your statements.\u201d<\/p>\n