Canada's retaliatory tariffs take effect as US trade talks stall

• Canada's retaliatory tariffs on U.S. goods took effect after midnight on Tuesday, intensifying an 18-month-old trade war ​and spurring Prime Minister Mark Carney to urge a further shift away from the country's biggest trading partner.
• The Canadian levies follow 50% tariffs the United States ‌imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed. The breakdown has widened a rift between the longtime allies, both of whom have blamed the other for the failed talks.
• Ottawa designed the retaliatory measures to put economic and political pressure on Washington, Canadian government officials said, and the tariffs ​are expected to hit sectors in some competitive states such as Michigan and Ohio, ahead of U.S. midterm elections in November.
• Gabriel Brunet, spokesperson for ⁠Dominic LeBlanc, Canadian minister responsible for bilateral U.S. trade, said: "Canadian and American officials have maintained ongoing discussions on a range of issues, although formal trade negotiations are not taking place at this stage."
• Ottawa's counter-tariffs cover some $20 billion of U.S. goods, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics.
• While the new tariffs affect a small amount of ​exports compared with total trade between the U.S. and Canada, some analysts worry the standoff could destabilise the U.S.-Mexico-Canada Agreement, the free-trade pact that succeeded NAFTA. Together, they have underpinned commerce across North America for decades.

 (Source: Reuters)