Canada has imposed retaliatory tariffs on about $20 billion of U.S. goods, matching dollar for dollar the 50% duties President Donald Trump placed on Canadian imports after trade talks collapsed. The new Canadian duties take effect Sept. 8 and hit steel, aluminum, dairy, seafood and wood products, while Ottawa also unveiled a $7.5 billion support package for affected businesses and workers.
Ottawa matches Trump's tariffs dollar for dollar
Canada announced retaliatory tariffs against the United States on Tuesday, matching "dollar for dollar" the 50% duties that Trump imposed over the weekend following a breakdown in trade talks. The countermeasures cover more than 700 U.S. goods worth about $20 billion, mirroring the scale of the U.S. tariffs on Canadian wine, cement, hockey sticks and other products.
The counter tariffs range from 15% to 50% and target a wide array of Canadian imports from the U.S., including dairy, seafood, appliances, and wood and paper products. Among the steepest are 50% tariffs on American steel and aluminum, doubling the previous rate, chosen to respond to earlier U.S. tariffs on metals and lumber.
New duties take effect Sept. 8
The new tariffs are set to take effect Sept. 8. Canada also unveiled an additional $7.5 billion package to support businesses and workers harmed by the U.S. tariffs. Canadian Finance Minister François-Philippe Champagne said the government had to respond after the U.S. side asked too much and offered too little.
Ottawa says the duties would have been avoided had the two countries struck a deal before the U.S. tariffs took effect Saturday. But Canada suspended negotiations Friday evening, arguing the U.S. made unreasonable demands. The Trump administration, in turn, has accused Ottawa of blowing up the talks by seeking last-minute changes.
Trump lashes out as tensions escalate
Trump lashed out at Canada on Tuesday, suggesting on Truth Social that the U.S. would halt business with Ontario and floating the idea of renaming Lake Ontario to "Lake America." He also accused Canada of targeting U.S. farmers and complained about the U.S. trade deficit with Canada, which is driven largely by heavy U.S. purchases of Canadian crude oil.
Canadian Prime Minister Mark Carney acknowledged the retaliation will raise costs and reduce choice for Canadians. Trade minister Dominic LeBlanc said Ottawa still hopes for a deal that benefits both countries but added, according to CNBC: "we're not waiting by the phone."
Source: CNBC
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