Canada Hits $20bn of US Imports With Retaliatory Tariffs

Canada will impose retaliatory tariffs of up to 50% on $20 billion of U.S. imports, sharply escalating the trade confrontation between the neighboring countries after talks with Washington collapsed.

The measures will take effect on September 8 and cover hundreds of American products, including steel, dairy goods and agricultural equipment.

Finance Minister François-Philippe Champagne released a 99-page list of targeted goods on Tuesday.

Canadian tariffs will be set at 15%, 25% or 50%, matching the rates Washington applies to corresponding categories of Canadian exports.

“When the U.S. asked too much and offered too little, we chose to stand up for Canadians,” Champagne said.

Ottawa Matches U.S. Tariff Rates

The retaliatory package comes after months of difficult negotiations between Ottawa and Washington that ended without an agreement on Friday.

Canada’s response is structured on what the government described as a dollar-for-dollar and rate-for-rate basis.

Ottawa also announced a $5.5bn support package for Canadian businesses and workers affected by the U.S. measures.

“Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multibillion-dollar support package will protect workers, farmers, families and businesses as we build a stronger, more resilient, and more diversified Canadian economy,” Champagne said.

Businesses Brace for September Measures

Industry Minister Mélanie Joly said the federal government would remain “flexible and adaptable” as Canadian companies face the effects of the widening tariff dispute.

She also called on consumers to support domestic businesses and products as the new U.S. measures take effect.

“When you choose a Canadian product, you’re not only putting pressure on the US, you’re protecting Canadian jobs,” Joly said.

Trump Raises Pressure on Canada

The latest Canadian action follows U.S. tariffs targeting $20bn of Canadian goods that took effect on Saturday.

Prime Minister Mark Carney had suspended trade negotiations with Washington late the previous night.

Trump then said on Monday that tariffs on Canadian cars and automotive parts would increase from January 1.

The U.S. president intensified his rhetoric again on Tuesday, threatening to rename Lake Ontario “Lake America.”

The confrontation is unfolding as the Trump administration contends with persistent inflation and growing voter dissatisfaction over its economic management ahead of crucial midterm elections.