Canada has announced retaliatory tariffs on approximately $20 billion (C$27.6 billion) worth of U.S. goods in a dollar-for-dollar response to punitive levies imposed by President Donald Trump. The measures follow the collapse of trade talks last Friday, which led to the implementation of 50% U.S. tariffs on roughly $20 billion of Canadian exports on Saturday. While President Trump warned Ottawa to fall in line, Prime Minister Mark Carney refused to accept what he termed a bad deal.
Effective September 8, Canada will impose duties ranging from 15% to 50% on approximately 700 U.S. products. This focused response includes steel and aluminum products, which will see tariffs increase from 25% to 50%, as well as dairy products like cheese, cosmetics, wood products, outdoor equipment, fish, appliances such as dishwashers, and farm equipment. Finance Minister François-Philippe Champagne stated that the tariffs are intended to protect domestic producers, manufacturers, and market share.
To mitigate the impact of the escalating trade war, the Canadian government unveiled a C$7.5 billion aid package to support impacted businesses, workers, farmers, and families. Finance Minister Champagne emphasized that Canada will support its industries with whatever it takes for as long as it takes. Meanwhile, the Trump administration is discussing additional trade penalties as the two neighbors slide toward an all-out trade war.