Canada’s new retaliatory tariffs on U.S. goods took effect Tuesday, raising fresh concerns for Washington exporters in paper, industrial machinery and wood prod
Canada’s new retaliatory tariffs on U.S. goods took effect Tuesday, raising fresh concerns for Washington exporters in paper, industrial machinery and wood products as a trade dispute between the two countries deepens.
The Canadian tariffs, ranging from 15% to 50%, cover roughly $20 billion in annual U.S. imports.
The list includes steel, aluminum and iron products, milk, clothing, golf clubs and video game consoles at 50%; cheese, carpets and appliances at 25%; and forklifts and industrial molds at 15%. Canada exempted fresh fish and lobster after objections from its seafood industry.
The action is Canada’s dollar-for-dollar response to 50% U.S. tariffs imposed last month on selected Canadian products after trade negotiations collapsed. Tariffs are paid by importers, which can lead companies to raise prices, buy fewer goods or seek suppliers elsewhere.
"It means higher prices for everyone," said Guy Occhiogrosso, president and CEO of the Bellingham Regional Chamber of Commerce. "This is higher prices for businesses, which then have to raise their prices for consumers."
Occhiogrosso said the people of Whatcom County share a unique relationship with Canadians, and it is more like an integrated community that transcends the border. That relationship is now severely strained, Occhiogrosso said.
"I hear from Canadians regularly, and they tell me they are upset. Some say they don't know when they are going to return to Whatcom County, or even, let's say, the Pacific Northwest portion of the United States," Occhiogrosso said.
Washington state exported more than $4 billion in goods to Canada during the first half of 2026. Among the sectors facing Canadian tariffs are industrial machinery, paper and paperboard, electrical machinery and wood products.
Aerospace products do not appear to be directly targeted in Canada’s new list. However, manufacturers such as Boeing suppliers could still face higher costs if tariffs raise prices for steel, aluminum and other imported parts.
"We have employers here in Whatcom County that supply to Boeing," Occhiogrosso said. "Some of the airplanes that they make and other companies make, they are getting parts from everywhere."
For now, the tariffs cover only a limited share of the enormous trade relationship between the two countries.
The larger concern for Washington businesses is whether the dispute expands, particularly after Trump threatened additional tariffs on Canadian-made autos and trucks.
