Canada says it will impose retaliatory tariffs on US imports

Canada will impose retaliatory tariffs on C$3.6 billion ($2.7 billion) worth of US aluminum products after the United States said it would impose punitive measures on Canadian aluminum imports.

Deputy Prime Minister Chrystia Freeland told a news conference the countermeasures would be put in place by September 16 to allow consultations with industry.

Trump moved on Thursday to reimpose 10% tariffs on some Canadian aluminum products on August 16 to protect US industry from a "surge" in imports. Canada denies any impropriety.

The Canadian list of goods that might be subject to tariffs includes aluminum bars, plates, refrigerators, bicycles, washing machines and golf clubs. Trump is a keen golfer.

The list of goods subject to tariffs is narrower than the last time Ottawa struck back at Trump because the two sides agreed in 2019 to limit the scope of retaliation in disputes over steel and aluminum, said a Canadian government source who requested anonymity.

In 2018, Ottawa slapped tariffs on C$16.6 billion ($12.5 billion) worth of goods ranging from bourbon to ketchup after Washington imposed sanctions on Canadian aluminum and steel.

Trump acted just weeks after a new continental trade pact between the United States, Canada and Mexico took effect. The North American economy is highly integrated and Canada sends 75% of all its goods exports to the United States.

Trump said Thursday that he was re-implementing tariffs because there was a surge in aluminum exports from Canada to the US in recent months, but industry organisations dispute that claim.

Aluminum imports from Canada rose sharply from February to March but have since levelled off and dropped 2.6 per cent from May to June, according to the Aluminum Association trade group.