OTTAWA — Canada's retaliatory tariffs on American imports took effect on Monday, matching President Donald Trump's 50% levies on Canadian goods. The Department of Finance confirmed the measures would apply dollar-for-dollar to a broad range of US products, deepening the trade confrontation between the two neighbours.

The escalation followed Trump's decision to impose 50% tariffs on Canadian exports, which Ottawa condemned as unjustified and damaging to integrated North American supply chains. Canadian officials said the countermeasures were designed to target American industries with political weight while limiting harm to Canadian consumers.

Business groups on both sides of the border warned of rising costs for manufacturers, farmers and automakers. The Canadian Chamber of Commerce said the measures would raise prices and disrupt cross-border commerce that supports hundreds of thousands of jobs. Industry associations in the United States urged the White House to seek a negotiated settlement.

The dispute threatens to strain a relationship governed by the Canada-United States-Mexico Agreement, the trade pact Trump signed in his first term. A spokesperson for Global Affairs Canada said Ottawa remained open to talks but would not remove its tariffs while American levies stayed in place.

Economists at Canadian banks cautioned that a prolonged standoff could weigh on growth in both economies and push the Bank of Canada to reconsider its policy outlook.