Treasury Secretary Scott Bessent stated that the latest tariffs on Canadian imports would increase US inflation by only 0.02%. He made these remarks during a G20 finance ministers meeting in North Carolina, arguing that Canada's economy is 13 times smaller than that of the US.
The US introduced 50% tariffs on approximately $20 billion worth of Canadian goods, including dairy, wine, and cement, starting August 22, 2026. These products were not previously protected under USMCA regulations.
In response, Ottawa announced retaliatory tariffs on US steel, dairy, and electronics on a dollar-for-dollar basis, effective September 8, 2026. The US continues to maintain duties on Canadian steel, aluminum, lumber, and automobiles.
Bessent accused Canadian Prime Minister Mark Carney of politicizing the trade dispute. He noted that the $20 billion in targeted goods is a small fraction of the nearly $600 billion in annual bilateral trade between the two nations.