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Canada braces for prolonged trade war as counter-tariffs on US take effect

The tariffs will apply to $20bn worth of American products, jeopardising the stability of the world's largest bilateral trading relationship.

BBC World

Canada's retaliatory tariffs on a range of US goods came into effect on Tuesday, with no sign of a trade deal on the horizon.

The counter-tariffs will apply to nearly C$28bn ($20bn; £15bn) worth of American products, from steel to furniture to cotton T-shirts, and will be as high as 50%.

Fresh fish and lobster were also on the list, but Canada later omitted them after pushback from its seafood industry - a sign of the tricky balance it has to strike as it retaliates against its largest trading partner.

With new US tariffs and Canadian counter-tariffs are now in effect, businesses on both side are scrambling to deal with what comes next.