Honey, makeup, Christmas decorations and a host of other everyday products have fallen victim to the latest US-Canada trade crossfire.More than 550 Canadian goods are now facing a steep 50% US tariff that came into force on Saturday. The list also includes kitchenware, smartphones, golf equipment, cosmetics, sports gear and household items.The new duties are expected to cover around $20 billion worth of Canadian goods, equivalent to about 5% of the $381.92 billion of products Canada exported to the US last year.The tariff does not cover most of Canada’s exports, but the 50% rate could still weigh on consumers if it remains in place. Importers, the businesses bringing goods into the US, pay the tariffs, with at least some of that additional cost typically passed on to shoppers. The latest duties come on top of price increases linked to tariffs imposed earlier.The breadth of the new list means the impact could show up across a wide range of shopping categories, as well as in expenses such as home-building.And the tariff fight is already set for another round. Canadian Prime Minister Mark Carney has promised “dollar for dollar” retaliation from September 8, while US President Donald Trump has threatened further tariffs on Canadian products, including automobiles.
What is caught in the tariff net?
The Trump administration had said last month that its planned 50% tariffs would cover products such as hockey sticks, wine and cement. The final list runs much wider, covering more than 550 goods.Among the products facing the new tariff are natural honey, bulbs for plants such as tulips and lilies, some fresh cut flowers, seeds for beets, onions and other vegetables, horsehair, tortoise shells, antlers and various animal products.The list also includes beer, vermouth and cider, along with furniture knobs, wallpaper, lighting fixtures, plates, cups, bowls and other kitchen or tableware.Paints, varnishes, vinyl tile floor coverings and various plywood sheets have also been targeted, as have ice skates, golf equipment, fishing rods and other sports accessories.Consumers could also see the impact on perfumes, makeup and manicure preparations, as well as suitcases, bags, gloves and coats.Toys and certain “articles for Christmas festivities” are on the list, alongside digital cameras and recording equipment, smartphones, video game consoles, envelopes, cigarette paper and toilet or facial tissue.
Why has Trump imposed the 50% levy?
The tariffs were imposed under Section 338 of the Tariff Act of 1930, a Great Depression-era provision that had never previously been used. It allows the president to impose import taxes of up to 50% on goods from countries accused of discriminating against US businesses.Trump has said Canada discriminated against US automobiles, alcohol and dairy products, particularly after the introduction of his earlier import taxes last year.However, the products covered by the latest tariffs extend far beyond those categories.Cars, auto parts and energy products were excluded from the latest tariffs, but they remained central to negotiations between the two countries, which collapsed at the eleventh hour over the weekend.Carney said on Monday that Washington’s proposals for the auto sector would “gradually dismantle” Canadian production.He also pointed to Canada’s position as the largest customer for US automobiles and questioned what the latest US move would mean for workers in states such as Ohio, Kentucky and Alabama whose jobs depend on that demand.
Canada prepares to retaliate
Carney said Canada would respond to the new US tariffs with measures of its own.On Saturday, he announced that Canada would begin dollar-for-dollar countermeasures on September 8. The measures will target US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.Carney said further details would be announced later.The possibility of the trade dispute spreading to more products and sectors grew on Monday.Ontario Premier Doug Ford told AP in an exclusive interview that “everything is on the table”. He said the province would be ready to cut off electricity and critical minerals to the US if the trade war worsened.“Trump “underestimates Canada. We’re all in,” Ford said. He also urged Canada to consider using oil and potash, both major exports, as leverage.Trump, meanwhile, said his administration would increase tariffs on Canadian cars, trucks, automotive parts and steel to 50% from January 1, 2027.Canada currently faces a broader 25% tariff on autos, while most steel imports already face a 50% sectoral tariff.Trump accused Canada of “ripping off” the US for years through what he called “ridiculously high tariffs” on American farmers. “WE DON’T NEED CANADA, THEY NEED US!” he added in a Monday Truth Social post.