Canada Hits Back With Retaliatory Tariffs as Trade War With US Escalates
Canada retaliates against US tariffs with duties on $20B in goods, as ministers vow to defend economic sovereignty.
Canada has imposed retaliatory tariffs on approximately $20 billion worth of American goods, including steel, dairy products, appliances, and farm equipment, in response to recent US trade actions. The move marks a sharp escalation in the trade dispute between the two neighbours, threatening one of the world's largest trading relationships.
The new duties extend beyond industrial products, affecting everyday items such as seafood, cheese, clothing, cosmetics, and toilet paper, with some facing tariffs as high as 50 percent. The retaliation follows the Trump administration's imposition of 50 percent tariffs on Canadian goods over the weekend after trade negotiations collapsed.
At a news conference, Canadian Jobs Minister Patty Hajdu acknowledged the anxiety caused by the escalating dispute. She noted that while Canadian workers have experienced the impact of tariffs before in sectors like softwood lumber and pulp and paper, the current situation is unprecedented in scale and speed.
"It has an effect of sort of freezing people in place," Hajdu said, referring to the uncertainty that makes it difficult for individuals and businesses to plan for the future.
Finance Minister François-Philippe Champagne framed the response as a matter of national principle, stating that maintaining Canada's economic sovereignty is non-negotiable. He emphasized that Canada has trade agreements with numerous nations and remains open to partnerships, calling the moment a "Team Canada moment."
The tariff announcement coincided with a separate controversy involving US President Donald Trump's suggestion that he is considering renaming Lake Ontario to "Lake America." The proposal echoes Trump's earlier executive order renaming the Gulf of Mexico as the Gulf of America.
Industry Minister Mélanie Joly dismissed the idea firmly. "We'll always call it Lake Ontario. Period," she said, expressing pride in the Great Lakes and vowing that Canada would "stand up for what we have" while responding strategically to what she described as "shenanigans."