Canada officially implemented its "tit-for-tat" tariffs against the tariff measures by the U.S. Donald Trump administration on the 8th, local time.

With President Trump also escalating his warnings against Canada, projections suggest that a trade war between the two nations could intensify further.

Canada slapped retaliatory tariffs of up to 50% on 27.6 billion Canadian dollars (approximately 20 billion U.S. dollars) worth of U.S. imports starting at midnight Eastern Time on this day.

By item, tariff rates on certain U.S. steel and aluminum products were doubled from the existing 25% to 50%.

Tariffs of 25% were imposed on some steel and aluminum derivative products, home appliances, dairy products such as cheese, and fish and seafood.

In addition, a 15% tariff was applied to industrial tools and other items.

This is a reciprocal response to the U.S. imposing 50% tariffs on approximately 20 billion dollars worth of Canadian products starting on the 22nd of last month.

Canada's stance is to respond in kind under the so-called "dollar for dollar, rate for rate" approach to the U.S. tariff measures.

This effectively clarifies that the newly imposed tariffs are a retaliatory measure against the preemptive strike by the U.S.

The two countries reportedly continued trade negotiations until late last month and came close to an agreement at one point, but failed to narrow their differences at the last minute.

Since then, both sides have engaged in sharp exchanges, pointing fingers at each other for the collapse of negotiations.

In particular, President Trump provoked Canada by signing an executive order to rename Lake Ontario, located on the U.S.-Canada border, to Lake America.

Through social media Truth Social, he mocked Canadian Prime Minister Mark Carney and Ontario Premier Doug Ford as "clowns," while also declaring that he would raise tariffs on Canadian automobiles to 50% starting next year.

Then, on the 6th ahead of the implementation of Canada's retaliatory tariffs against the U.S., he raised the issue of currency imbalances between the U.S. and Canadian dollars, and on the 7th, the previous day, he directly targeted Canadian aircraft manufacturer Bombardier by stating, "Do not sell Bombardier in the U.S. anymore."

In response, Canada also declared a "war" with the U.S., and the trade conflict between the two countries appears to have entered an escalation phase in effect.

However, analysis suggests that the trade dispute between the U.S. and Canada will ultimately increase pain for both sides.

Experts point out that as long-standing allies with deep economic interdependence, it will not be easy to find replacement trade partners for each other in a short period.

While the prevailing view is that Canada, with its smaller economic size, will take a harder hit, it is just as burdensome for the U.S. with the midterm elections coming up this November.

Bloomberg analyzed that Canada's latest retaliatory tariffs will deal a heavy blow to U.S. exporters in Michigan and Ohio, which are considered key battleground states.

Republican lawmakers with constituencies in swing regions now find themselves in a position where they must explain President Trump's tariff policy to voters.

Republican Senator Susan Collins of Maine, which borders Canada, even publicly criticized the tariff policies of the Trump administration through a statement.

From Canada's perspective as well, analysis suggests that the ultimate goal of these retaliatory tariffs is to pressure the U.S. and bring it back to the negotiating table.

Brian Clough, who served as an advisor on U.S.-Canada relations during former Canadian Prime Minister Justin Trudeau's tenure, told Bloomberg, "Canada's retaliatory tariffs are intended to make U.S. businesses and consumers feel the cost of this trade war and to create an incentive for the U.S. to return to the negotiating table."

He added, "Canada imposed tariffs not because it wants a trade war, but because it wants the trade war to end."

However, triggered by this tariff imposition, the conflict between the two sides is expected to remain on a parallel track for now.

A Canadian government official who requested anonymity told Bloomberg that as of the past weekend, no meetings had been scheduled with the U.S. administration.

The White House also did not respond to requests for comment.

(Photo: AP, Yonhap News)