Canada braces for prolonged trade war as counter-tariffs on US take effect
Tuesday, 8 September 2026
Warm-up
- How do tariffs on imports affect shoppers in your country?
- What products from the US are common where you live?
- When should governments protect local industry, in your view?
Vocabulary
- tariff
- A tax that a country puts on imported goods.
- counter-tariff
- A tax placed in response to another country’s tariff.
- impose
- To officially order and start using a rule, tax or law.
- bilateral
- Involving two countries or two sides.
- retaliation
- An action done to punish or answer another action.
- pushback
- Strong opposition to a plan or decision.
- diversify
- To add variety so you are not dependent on one thing.
- resilience
- The ability to recover or keep going after problems.
Reading
Canada’s counter-tariffs on US goods took effect on Tuesday, after talks collapsed in late August. The measures target nearly C$28bn ($20bn; £15bn) of US products and can be as high as 50%. Items include steel, furniture and cotton T-shirts. After fisheries pushback, fresh fish and lobster were omitted to avoid hurting local jobs.
The US has already imposed a 25% tax on Canadian cars and trucks, plus tariffs on steel, aluminium and lumber. In August it added 50% duties on goods such as dairy, alcohol, hockey sticks and perfume. Ottawa calls its response “dollar-for-dollar” retaliation, although both sides say they want a deal.
Economists warn prices may rise on everyday goods. Canada and the US have the world’s largest bilateral trading relationship, near $900bn in 2025. Canada aims to diversify trade; July data show US-bound exports fell to 66%, from about 75% before the trade war. The economy showed resilience earlier this year, but job losses grew in August.
Comprehension
- What value of US products do Canada’s counter-tariffs target?
- How high can the new Canadian tariffs be?
- Which seafood products were removed after industry pushback?
- What tax has the US already imposed on Canadian vehicles?
- What share of Canada’s exports went to the US in July?
Grammar focus
Advice vs obligation: should vs must / have to
Use should for advice or suggestions; use must/have to for obligations or rules. Form: should + base verb; must / have to + base verb. (Example 2 constructed.)
- Economists **warn prices may rise** on everyday goods.
- Analysts **should raise** prices to cover higher costs.
Grammar exercise
Complete each sentence with the correct form of the verb in brackets.
- Households (cut) ___ non-essential spending now.
- Importers (pay) ___ counter-tariffs on arrival.
- Fisheries (protect) ___ workers with training.
- Factories (follow) ___ new customs procedures.
- Canada (diversify) ___ trade to lower US reliance.
Discussion
- Should Canada keep retaliating if prices for shoppers rise? Why or why not?
- Which Canadian or US products will feel these tariffs most? Explain.
- How can Canada diversify trade so it relies less on the US?
- What signs show an economy’s resilience during a trade dispute?
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