Canada on Tuesday announced retaliatory tariffs on about 20 billion dollars worth of annual imports from the United States, matching Washington’s latest duties dollar-for-dollar.
The Canadian government said the counter-tariffs, which will take effect on Sept. 8, would impose duties of 15 per cent, 25 per cent and 50 per cent on about 700 products imported from the U.S.
The move follows U.S. President Donald Trump’s new 50 per cent tariffs on about 20 billion dollars worth of Canadian imports, which took effect on Saturday after trade negotiations between the two countries collapsed.
The escalating trade dispute marks a new low in relations between the two long-standing allies.
Canada’s Finance Minister, François-Philippe Champagne, said the measures, alongside a multi-billion-dollar support package, were designed to protect Canadian businesses, workers, farmers and families.
“Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multi-billion-dollar support package will protect workers, farmers, families and businesses,” Champagne said.
According to a Canadian government official, the 50 per cent tariffs would apply to steel, aluminium, furniture and clothing.
The 25 per cent duties would cover cheese, appliances and some seafood, while electronics and tools would attract a 15 per cent tariff.
The Canadian government said the tariffs were calculated using 2024 trade figures and covered goods accounting for nearly 4.5 per cent of Canada’s imports from the U.S.
Trump’s latest tariffs, however, affect about five per cent of Canada’s exports to the U.S., with trade analysts warning that the impact could be significant in specific sectors.
Wood products, particularly kitchen cabinet manufacturers, are among sectors expected to face pressure from the U.S. measures.
Canada’s Industry Minister, Melanie Joly, said the retaliatory tariffs were primarily intended to protect Canadian businesses while also putting political pressure on U.S. states ahead of the Nov. 3 midterm elections.
“We need to make sure that the competitors don’t have access to the Canadian market in a better way than their own products,” Joly said.
She added that Canada had deliberately targeted products linked to particular U.S. states as part of its strategy.
“Second, we’re also targeting products that will target states in the U.S. and so we’re being wise and strategic to put political pressure,” she said.
The Canadian counter-tariffs will also cover selected prepared foods, perfumes and toiletries, plastics, lumber, wood pulp and paper products, carpets and other clothing items.
The Canadian government has also announced financial support measures for businesses and workers affected by the trade dispute.
The White House and the U.S. Trade Representative had not immediately responded to requests for comment on the latest Canadian measures.
The dispute represents a further escalation in trade tensions between the neighbouring countries, whose economies are deeply integrated and whose businesses rely heavily on cross-border trade.
Earlier on Tuesday, Trump also threatened to rename Lake Ontario, which is shared by Canada and the United States, “Lake America,” adding a political dimension to the escalating disagreement.
The latest measures are expected to increase pressure on businesses on both sides of the border as Canada and the U.S. impose increasingly targeted tariffs on each other’s products.
