Canada’s retaliatory tariffs on C$27.6 billion, or roughly $20 billion, of U.S. imports took effect Tuesday after Washington imposed 50% tariffs on an equivalent value of Canadian goods. Ottawa’s duties range from 15% to 50% and cover products including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, electronics, furniture, clothing and beauty products. Economist Justin Wolfers said the immediate economic stakes for Canada are limited because the roughly $20 billion targeted by U.S. tariffs represents about 4% of Canadian exports. He said Ottawa selected products, including machinery, aluminum and dairy, with exposure concentrated in politically sensitive Midwestern states near the Canadian border, raising political costs for Trump while limiting the broader economic impact. Prime Minister Mark Carney said Canada must reduce its reliance on the United States through trade, defense and critical-mineral partnerships with other trusted countries while maintaining dollar-for-dollar retaliation. The U.S. received about 68% of Canadian exports through July, down from roughly 73% previously, Reuters reported. Canadian exports to the U.S. fell 6.6% in July while shipments to other markets rose 7.4%, based on Statistics Canada data cited by Reuters. The confrontation has extended beyond tariffs. Trump called the U.S.-Canada currency exchange rate unacceptable and threatened to block Bombardier Inc. jets from the U.S. market, while warning that Canadian politicians who treat him as an enemy could face severe economic and political consequences. Carney has said a mutually beneficial agreement remains possible, although formal trade talks remain suspended.