Canada has announced retaliatory tariffs of up to 50% on nearly C$28 billion worth of US imports, responding to the latest US levies on Canadian goods following the collapse of trade negotiations.
The measures, scheduled to take effect on 8 September, will cover about 700 American products. Canadian officials said the list was designed to correspond to goods affected by US tariffs.
Finance Minister François-Philippe Champagne said Canada was responding to 50% tariffs imposed by the Trump administration on a range of Canadian products after talks broke down on Friday. He described the Canadian action as proportionate and strategic, saying the US measures would affect workers, companies and communities across Canada.
Goods affected by the measures
Canada will raise its tariff on US steel and aluminum products already subject to a 25% counter-tariff to 50%. A 50% levy will also apply to products including natural honey, furniture, clothing, makeup and perfume.
Other goods, including appliances, dairy products such as cheese, fish and seafood, and certain derivative steel and aluminum products, will face a 25% tariff. Some tools and machinery, including forklifts and air-conditioning machines, will be subject to a 15% duty.
Champagne also announced an additional C$7.5 billion in support programmes for workers and businesses affected by US tariffs, aimed at reducing job losses and helping companies remain operational.
Rising tensions over trade
The new measures mark a further escalation in the dispute between the two countries. The added tariffs are expected to increase costs for supply chains built over decades, potentially affecting businesses and consumers on both sides of the border through higher prices.
President Donald Trump had not commented directly on Canada’s latest announcement. In posts on Truth Social, however, he accused Canada of taking advantage of the United States for decades and imposing high tariffs on American farmers. He also said Canada was difficult to deal with and suggested renaming Lake Ontario as Lake America.
On Monday, Trump threatened to increase US tariffs on Canadian automobiles to 50% from 1 January. Prime Minister Mark Carney responded by accusing Trump of seeking to damage Canadian industries, including auto manufacturing and the steel and aluminum sectors.
Despite heated public exchanges, Ontario Premier Doug Ford said on Tuesday that he wanted an agreement that would benefit both Americans and Canadians. The dispute has also raised questions about the future of the US-Mexico-Canada Agreement, the regional free-trade pact.
Source: BBC News
