Canada announces retaliatory tariffs on $20bn worth of U.S. goods
Canada has announced retaliatory tariffs on C$27.6 billion (about $19.94 billion) worth of United States goods, matching new duties imposed by Washington as the trade dispute between the two countries escalates.
The Canadian government also unveiled a C$7.5 billion support package for businesses, workers and industries affected by the latest round of tariffs.
The counter-tariffs, which will take effect on September 8, will impose duties of 15, 25 and 50 per cent on about 700 products imported from the United States, according to a government statement.
The measures came after US President Donald Trump’s new 50 per cent tariffs on $20 billion worth of Canadian imports took effect on Saturday, following the collapse of talks between the two countries aimed at resolving the dispute.
Canada’s latest response has further strained relations between the two longstanding allies, with both sides now imposing significant tariffs on each other’s goods.
Under the new Canadian measures, tariffs of 50 per cent will apply to selected products, including steel, aluminium, furniture and clothing. A 25 per cent tariff will be imposed on cheese, appliances and some seafood, while electronics and tools will attract a 15 per cent duty.
Canada’s Finance Minister, François-Philippe Champagne, said the measures were designed to protect Canadian workers, farmers, families and businesses from the impact of the US tariffs.
“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.
The Canadian government said the C$7.5 billion support package would include assistance for small and medium-sized businesses, funding to support companies’ cash flow and measures for workers who could be affected by the new tariffs.
A government official said the tariffs had been structured to minimise their impact on Canadian consumers and businesses while still exerting pressure on US exporters.
The latest measures mark another escalation in the trade dispute, which has raised concerns about the economic consequences for businesses and consumers in both countries.