Retaliatory duties applied by Canada in response to higher US duties on steel and aluminum imports came into effect yesterday (1 July) – but do not include clothing or textiles.

The Canadian government says the countermeasures will remain in place until the US eliminates its trade-restrictive measures against Canadian steel and aluminium products.

Canada's list includes an additional 10% duty on US-made handkerchiefs, sacks and bags, and table cloths.

The US tariffs of 25% on foreign-made steel and 10% on aluminium are the result of a Section 232 national security investigation, and went into place on 1 June.

Canada's surtaxes will only apply to goods that originate in the US, in accordance with the NAFTA marking rules. Canada also filed a case against the US tariff action at the World Trade Organization (WTO).

The European Union (EU) has already moved ahead with its plans to impose temporary safeguard duties on imports of US-made clothing in response to the punitive US tariffs – a decision that has been slammed by the US clothing sector. The EU's additional duties of 25% apply to jeans, T-shirts, cotton shorts, occupational trousers, and men's shoes with leather uppers.